Less than two-fifths (36%) of average retirement income before tax is provided by private and working pensions, according to a new report.

The figure drops to less than a third for single pensioners, according to the analysis of Government data from provider iSIPP.

Average incomes before tax were £30,570 for typical pensioners, rising to £41,130 for couples and dropping to £20,120 for single pensioners.

Benefits, including the State Pension, formed the biggest proportion of incomes at 44%.

Investment income contributes just over £2,100 year to average pensioner earnings.

The majority (97%) of retired people received the State Pension while 71% had private/workplace pension income. Around one in seven (14%) had earnings from work while 58% had some investment income.

Hrishi Kulkarni, managing director at iSIPP, said: “Private pensions make a major contribution to income in retirement, with more than 70% of retired people having some income from retirement savings either through an employer or private pensions.

“However, it is instructive to find out that pensions only provide 36% of income in retirement with benefits, including the State Pension, accounting for a higher proportion of retirement income.

• iSIPP analysed the latest Government data for retirement incomes from the 2021/22 tax year.

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