Pensioners ‘better off than those in work’

PENSIONER HOUSEHOLD incomes have overtaken those of working age equivalents for the first time, a new study found.

Elderly spending power has been boosted by a new wave of pensioners who tend to still be in work, own a home and receive generous pension pots, analysis by the Resolution Foundation for the Intergenerational Commission shows. The study, which charts income changes across different generations during the past half century, states low growth for working age households has coincided with a surge in pensioner wealth.

After housing costs, typical pensioner households are now £20 a week better off than typical working age ones, according to the report. This is in marked contrast to 2001 when typical pensioner incomes were £70 a week lower than working age ones.

The growth appears to have come from the recent cohort of pensioners.

Adam Corlett, economic analyst at the Resolution Foundation, said: “One of the most intriguing aspects of the recent living standards story across Britain has been typical pensioner household incomes overtaking working age households for the first time.

“This has led some to assume that all pensioners are enjoying some kind of boom amid the painful squeeze for everyone else. The reality is quite different – the incomes of individual pensioners grow relatively slowly, particularly once they’ve stopped working.”

The said the main driver is a new wave of pensioners who are more likely to work, own their home and have a generous private pension.