Did you know? According to recent statistics pension values have grown and the gap between wage earners and retired people has narrowed. Also since the financial crisis more figures show that income amongst working people has decreased by 1.2%, on the other hand retired people has risen by 13%. This is all because there is an inequality among pensioners has enlarged, pensioners that are already wealthy are becoming more wealthier thanks to generous benefits that come with private pensions.
3. Key facts you need to know about retired incomes compared to working people
1.People who have retired have higher incomes
Another proven fact is that last year pensioners had in increase income of £2,500 higher than in 2007/8, compared to not retired people, this including those who don’t work but are of working age, earned £300 less. Within the last two years the average non retired household income rose by only £55, while retired people had an income rise of £656. As well as this median annual income for a retired household has risen whilst other household incomes have fallen. Furthermore, a report has stated that rising private pension income was falling behind the growth in a pensioners wealth. While this was happening, there was more unemployment due to the financial crisis, this led to wages in many areas not recovering to the original levels. leaving people of working age worse off.
2. More and more pensioners have a higher private pension income
More figures are showing that more pensioners have a private pension, this leading to fewer people relying on the state pension. On average the state pension is worth just £9,300, this is why pensioners on average rely on private pensions and receive £11,000. Reports say that both the value of the private pension and the amount of people claiming as has significantly risen. “Gold plated” benefits are supposed to be guaranteed for life and wealthy pensioners are typically benefiting from this.
3. Inequality is significant and is growing
It might seem that all pensioners earn a large amount of money however, this is not the case. The gap between the richer and poorer pensioners is at the highest it has been it over 15 years, this is due to the poorer pensioners being reliant on only the state pension. Did you know that inequality has risen sharply? It has fallen by 1.5% points among working age people since 2009 and risen by 3.8% points among retired people.The state pension is the main factor which is lessening inequality among pensioners, this meaning it is less severe compared to working age people. Government have been maintaining state benefits through measure such as the triple lock. And this guarantees that the state pension income will rise to the same rate as average earnings. While others struggle on small pensions or benefits, private pension wealth is concentrated in the hands of a few. This growing inequality is affecting the divide between younger and wealthier pensioners. Last year charity Independent Age found that over-75s have income £59 a week lower than younger pensioners, and £112 a week lower than working age adults.