Wednesday, 02 July 2014 11:40
Pensioners' income rises in real terms for first time in three years
A real terms rise in pensioners' incomes has been reported for the first time in three years.
The Department for Work and Pensions report, released this morning, showed in 2012/13, average gross incomes of pensioner couples and singles grew to £477 – an above inflation rise – with state benefits accounting for 44% of the total.
The DWP attributed the income growth to the triple lock protection of the State Pension and more older people choosing to stay in work.
The triple lock ensures pensioner incomes are now protected against inflation – increasing each year by whichever is the highest out of prices, average earnings or 2.5%.
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Last year this meant that the basic State Pension increased by 5.2% and Pension Credit by 3.9%, compared with the 3.1% increase in Retail Price Index inflation.
Over the past 14 years, average net incomes for pensioners after housing costs have been taken into account, grew by 37% in real terms.
Contributing to this rise was the fact a greater number of pensioners have chosen to remain in work, with earnings among this age group growing by 62%.
Pensioners' mean net income has grown faster than incomes for the whole population over the last 14 years.
Minister for Pensions Steve Webb said: "I am proud of our work to protect pensioners, the success of which is borne out in these figures.
"The triple lock has marked a profound shift in how the state supports pensioners and it means that 12.7 million people will be over £400 a year better off by the end of this Parliament.
"Alongside the guarantee of a strong State Pension, we are also seeing more older people choose to phase their retirement in a way which suits them.
"This government's historic decision to end the discrimination of the mandatory retirement age has made that possible for thousands of people."
Figures released today showed:
• benefit income, which includes the State Pension, has increased by 27% since 1998/99
• in 2012/13 state benefits accounted for 44% of pensioners' incomes, occupational pensions made up 27%, earnings 17%, investment income 7%, and personal pensions 4%
• since 1998/99, the fastest growing sources of income were earnings, which has increased by 62% in this time, and personal pension income, which has increased by over 250%
• 28% of pensioner units (single pensioners or couples) received at least one income-related benefit in 2012/13, such as Pension Credit, Housing Benefit or Council Tax Benefit
• 22% of pensioner units were in receipt of disability benefits – pensioner couples received an average £88 a week from disability benefits in 2012/13 compared with £69 for single pensioners
The Department for Work and Pensions report, released this morning, showed in 2012/13, average gross incomes of pensioner couples and singles grew to £477 – an above inflation rise – with state benefits accounting for 44% of the total.
The DWP attributed the income growth to the triple lock protection of the State Pension and more older people choosing to stay in work.
The triple lock ensures pensioner incomes are now protected against inflation – increasing each year by whichever is the highest out of prices, average earnings or 2.5%.
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Last year this meant that the basic State Pension increased by 5.2% and Pension Credit by 3.9%, compared with the 3.1% increase in Retail Price Index inflation.
Over the past 14 years, average net incomes for pensioners after housing costs have been taken into account, grew by 37% in real terms.
Contributing to this rise was the fact a greater number of pensioners have chosen to remain in work, with earnings among this age group growing by 62%.
Pensioners' mean net income has grown faster than incomes for the whole population over the last 14 years.
Minister for Pensions Steve Webb said: "I am proud of our work to protect pensioners, the success of which is borne out in these figures.
"The triple lock has marked a profound shift in how the state supports pensioners and it means that 12.7 million people will be over £400 a year better off by the end of this Parliament.
"Alongside the guarantee of a strong State Pension, we are also seeing more older people choose to phase their retirement in a way which suits them.
"This government's historic decision to end the discrimination of the mandatory retirement age has made that possible for thousands of people."
Figures released today showed:
• benefit income, which includes the State Pension, has increased by 27% since 1998/99
• in 2012/13 state benefits accounted for 44% of pensioners' incomes, occupational pensions made up 27%, earnings 17%, investment income 7%, and personal pensions 4%
• since 1998/99, the fastest growing sources of income were earnings, which has increased by 62% in this time, and personal pension income, which has increased by over 250%
• 28% of pensioner units (single pensioners or couples) received at least one income-related benefit in 2012/13, such as Pension Credit, Housing Benefit or Council Tax Benefit
• 22% of pensioner units were in receipt of disability benefits – pensioner couples received an average £88 a week from disability benefits in 2012/13 compared with £69 for single pensioners
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