Pensioners work to boost their income

Pensioners have become relatively well-off compared with the rest of the UK population by working into their retirement, according to official figures.

The Office for National Statistics (ONS) said that in 2008-9 pensioner couples had an average weekly income of £564 – not far short of £30,000 a year. In the poorest 20% of households in the country, pensioner households account for 38%, down from 56% in 1977.

The data demonstrates that pensioners have become relatively better off than the rest of the population as a whole.

The ONS said: “Although retired households' income is lower than that of non-retired households, over the last three decades the position of retired households has improved.”

It was when looking at the sources of pensioners’ incomes that it was revealed that around a quarter of the money is earned from working, with another quarter from occupational pensions and 35% from the state pension.

Joanne Segars of the National Association of Pension Funds said: “There are now more than a million people over state pension age in the labour force because people want to work.” She went on to say that other pensioners had to work because they hadn’t been able to save enough for retirement.

With an increase of 44% in pensioner income from 1994-95 to 2008-09, the sector’s income rose faster than average earnings, but there are wide variations. The poorest 20% of pensioners have to get by on just £197 a week, whereas the top fifth have a weekly income average of £755.

The ONS said that pensions alone would only provide a “modest” income for pensioners, with just over half (53%) of single pensioners receiving pension income of less than £10,000 a year. Just over a third (36%) of pensioner couples manage on less than £15,000 in pension income.

For some pensioners, working may provide handy extras; for many, however, it remains a necessity.

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