National statistics

Pensioners' Incomes: financial years ending 1995 to 2023

Published 21 March 2024

Family Resources Survey (FRS) data collection for financial year ending (FYE) 2023

The composition of the FRS sample for FYE 2021 and FYE 2022 was affected by the move to telephone interviewing in response to the coronavirus (COVID-19) pandemic.

When preparing the FYE 2021 estimates, some evidence was found that the pensioners sampled were more affluent compared to previous time periods. They were more likely to be owner occupiers, receive an occupational or personal pension, have income from investments, and on average have access to higher levels of savings. The telephone interview approach that was adopted during FYE 2021 continued throughout FYE 2022. This affected both the size and quality of the achieved sample.

For FYE 2023, fieldwork operations for the FRS returned with face-to-face the preferred method of interviewing with telephone interviewing retained as an alternative. Overall, we have enhanced confidence in data quality due to the return of traditional fieldwork methods and the larger achieved sample size for Pensioners’ Incomes (PI) data of around 9,400 pensioner households. The achieved sample compares well with FYE 2020, and representativeness has improved on what was observed during the pandemic.

The mixed-method approach for FYE 2023 led to differences in the types of people responding face-to-face or by telephone, in particular by age. This has led to larger differences in reported income. While some of this change is real, reflecting below-inflation uprating of the State Pension in FYE 2023, and a reduction in the value of occupational pensions relative to inflation, the degree of change is also likely to have been somewhat affected by changes in pensioner sample composition between survey years. This broader context should be borne in mind when interpreting observed changes in pensioners’ incomes, and a comparison to FYE 2020 is recommended.

This publication concentrates on long-term changes in pensioners’ incomes, and interpretation of year-on-year changes should be treated with caution, as they are not usually statistically significant. Users should be mindful of the differences in data collection approaches across the period and the effect this has had on sample composition when interpreting changes in estimates over recent years. Additional caution is advised when interpreting changes in the data during and since the pandemic.

More information can be found in Annex 5 of the Households Below Average Income (HBAI) quality and methodology information report and the FRS background information and methodology.

This report examines how much income pensioners get each week and where they get that income from. It looks at how their incomes have changed over time and variations in income between different types of pensioners.

The population age distribution has changed a lot since FYE 1995, and pensioners now make up a larger proportion of the overall population. From April 2010, the State Pension age (SPa) has been increasing gradually for females, and since December 2018 has been increasing for both males and females.

Changes in the economy and to the benefit system mean that the amount and components of pensioners’ average weekly incomes have changed over time. These statistics look at these changes.

1. Main stories

Except where otherwise stated, we use the unequivalised income of pensioners, estimated both before and after housing costs (BHC and AHC). Income AHC is derived by subtracting rent, water rates and charges, structural insurance premiums, mortgage interest payments and ground rent, and service charges from income BHC. This report uses variants of the Consumer Prices Index (CPI) to adjust for inflation, to look at how incomes change over time in real terms.

Pensioners’ incomes have increased since 1995

Average weekly income of pensioners (AHC) by family type in FYE 2023 prices (£)

Pensioners’ average weekly incomes increased between the start of PI in FYE 1995, when it was £195, to £371 in FYE 2010. This increase is statistically significant. In the 10 years from FYE 2010 to FYE 2020, pensioners had similar average incomes with £371 and £384 respectively.

In FYE 2023, pensioners had an average income of £387, which is a statistically significant increase from FYE 1995.

Single male pensioners had higher average incomes than single female pensioners

Average weekly income of pensioners (AHC) by gender in FYE 2023 prices (£)

Single male pensioners had higher average incomes than single female pensioners in FYE 2023. Single males had an average weekly income of £286 and single females had an average income of £259. This difference is statistically significant.

Fewer pensioners were receiving income-related benefits

Percentage of pensioners receiving income-related benefits, FYE 1995, FYE 2010 and FYE 2023

The percentage of pensioners in receipt of income-related benefits in FYE 2023 was 21%. This has been decreasing since the survey began in FYE 1995 when 37% of pensioners were in receipt of such benefits. This decrease is statistically significant. This reflects the overall increase in pensioner income from the State Pension and private pensions over time because an increase in income reduces eligibility to income-related benefits.

The percentage of pensioners in receipt in FYE 2010 was 31%. The decrease between FYE 1995 and FYE 2010, and the decrease between FYE 2010 to FYE 2022 are both statistically significant.

2. What you need to know

Pensioners’ Incomes (PI) contains estimates of the levels, sources, and distribution of pensioners’ incomes. It also examines the position of pensioners within the income distribution of the population as a whole. The statistics are used by government departments, local authorities, academics, journalists, and the voluntary sector to gain a deeper understanding of pensioners’ incomes.

In this report we measure income for pensioners. Pensioners consist of single pensioners and pensioner couples. A pensioner couple means at least one person in the couple is over State Pension age (SPa). Estimates do not reflect income from others in a household but do include income from working-age partners who are part of a pensioner couple. Therefore, if a pensioner lives with their adult children, the children’s income is not included in this analysis.

The head of a pensioner unit is the member of the household with the highest income if that person is part of the pensioner unit. Otherwise, the head is the first person named in the survey who is part of the pensioner unit.

Income measures

Income measures used in Households Below Average Income (HBAI) consider variations in the size and composition of the households in which people live. This process is called equivalisation. Equivalisation reflects the fact that a family of several people needs a higher income than a single individual in order for them to enjoy a comparable standard of living. For more information on equivalisation, please see the background information and methodology.

Except where otherwise stated, we use the unequivalised income of pensioners, estimated both before and after housing costs (BHC and AHC). One of the main functions of PI is to provide information on the income of pensioner units in monetary terms, split by sources of income. This can only be done using unequivalised income.

Unless otherwise stated for certain income breakdowns, we use median income as our measure of average income, as the mean is often biased upwards by extremely high values. The mean is used however, when looking at the breakdown of income components. We also use AHC figures unless otherwise stated, as this is a better reflection of pensioners’ disposable incomes.

All income estimates have been adjusted for inflation. PI uses variants of the Consumer Prices Index (CPI) to adjust for inflation, to look at how incomes change over time in real terms.

See a full breakdown of how we measure income in the ‘About these statistics’ section of this publication.

Survey data

PI estimates are based on a sample of just over 9,400 pensioners in private households in the UK, taken from the Family Resources Survey (FRS).

For FYE 2023, fieldwork operations for the FRS returned with face-to-face the preferred method of interviewing with telephone interviewing retained as an alternative.

Overall, we have enhanced confidence in data quality due to the return of traditional fieldwork methods and the larger achieved sample size of 25,000 households, some 30% larger than was achieved in FYE 2020, and 50% higher than FYE 2022. The achieved sample compares well with FYE 2020, and representativeness has improved on what was observed during the pandemic.

There were some differences in the characteristics of pensioners interviewed face-to-face or by telephone. Pensioners who were sampled by telephone reported higher incomes on average than those interviewed face-to-face. The reintroduction of face-to-face interviewing meant that the achieved sample captured a larger proportion of pensioners aged over 85 years, particularly those with disabilities, and those who reside in social rented sector housing. There was also a lower proportion with income from occupational pensions, at a level now consistent with FYE 2020.

The FRS is conducted across the full financial year. The use of survey data means that the results in this report are subject to sampling variation. This affects how changes should be interpreted, especially over short time periods.

Statistical significance is a technical concept that says whether a reported change is likely to have arisen only by chance due to variations in the sampling. We calculate 95% confidence intervals around estimates in PI. This sets a standard that, where any change is reported as statistically significant, there is less than a one in 20 chance that the reported difference is due to sampling variation and there is no real underlying change. Statistically significant differences are clearly stated in the text. Other differences are not significant or have not been tested.

As shown in Table M1.2 of the background information & methodology, comparisons over a single year are rarely statistically significant. Users are advised to draw conclusions from long-term trends rather than year-on-year changes.

Data is for the UK from FYE 2003 onwards. Data from earlier years is for GB only.

The population estimates used to weight the FRS FYE 2023 are primarily based on the mid-year estimates rolled forward from the 2011 Census. This series of population estimates do not take account of the 2021 and 2022 Censuses across the UK. For more information on this, please see the background Information & methodology.

Additional tables and data

A comprehensive set of data tables breaking down headline results presented in this report are available. These tables are referenced throughout this report and show results for various demographic characteristics across the time series. Further breakdowns of the PI data can be created on Stat-Xplore.

Any analysis of the changes in the estimates below UK level and across a range of breakdowns should be undertaken with additional caution as the combination of smaller sample sizes and additional bias means it may not be possible to make meaningful statistical assessments of trends and changes for these breakdowns.

The PI dataset is available to download via the UK Data Service.

Considerations when interpreting average pensioner incomes

PI finds that there are differences in average incomes between age groups as well as changes over time. There are several reasons for this which should be noted when interpreting these results:

• the ‘age’ effect: older pensioners are less likely to be in work and hence receive a smaller amount from earnings. Furthermore, they are less likely to have a partner who is in work. Any pension(s) they may be in receipt of are related to their earnings, years of scheme membership, and pension contributions (including National Insurance in the case of the State Pension) they made previously in their working lives
• the ‘cohort’ effect: the rapid rise in occupational pension coverage in the 1950s and 1960s will have been more beneficial to later cohorts. From the 1980s, coverage of high contribution defined benefit (DB) schemes started to decline with most private sector DB schemes now closed to new joiners. Only 9% of all schemes are open to new entrants. Coverage in private sector workplace pensions only started to increase from 2012 following the introduction of Automatic Enrolment. However, contributions to defined contribution (DC) schemes are currently much lower than previous DB schemes
• the length of time since retirement: pensions generally increase by less generous uprating measures after retirement. In addition, most annuities purchased with occupational or personal pensions are level annuities, which do not increase over time. Income in real terms is therefore decreasing for these annuities once inflation is considered
• uprating: in FYE 2023 the Basic and New State Pension increased by 3.1% in line with Consumer Prices Index (CPI) inflation in September 2021. This was below the average CPI inflation during FYE 2023
• changing SPa over time: from 6 April 2010, the SPa has been increasing gradually for females, and since December 2018 has been increasing for both males and females. The FRS data contained in this report was collected throughout FYE 2023, during which the SPa for both males and females remained at 66 years. In this report, people are categorised as being above SPa based upon their reported birth date and the timetable for the legislated increases in SPa
• annuities and lump sums: 95% of all individuals receiving a private pension payment do so through a DB or DC Annuity. However, individuals who have just started accessing their private pension are much more likely to be receiving this through a Lump Sum or other DC product (49%)
• cost of living and wider support schemes: during FYE 2023 the government announced and implemented additional support to families with several cost of living and wider support schemes, depending on peoples’ circumstances. These payments are included as part of the income variables on the FRS dataset and are therefore also present in the PI data. PI data tables using variables that include the calculation of pensioner unit income reflect the Cost of Living Payments that the pensioner unit received. For more information, please see the FRS background information and methodology.

3. Overall income trends

Pensioner incomes have increased since 1995

Average weekly income of pensioners (AHC) by family type in FYE 2023 prices (£)

After the deduction of direct taxes, and housing costs, the average income of all pensioners in FYE 2023 was £387 per week.

There is a statistically significant increase in the average income of all pensioners from FYE 1995, when it was £195 per week, to FYE 2010, £371 per week. This change reflected growth in income from benefits, including the State Pension, as well as increased income from occupational pensions.

In FYE 2023, the average income for pensioner couples was £561 per week. This was more than twice that of single pensioners, who had an average income of £267 per week. This difference is statistically significant.

See Table 2.1 for full data.

Pensioner couples were less reliant on benefit income than single pensioners

Percentage of gross mean income from different sources by family type, FYE 2023

Pensioners receive income from a range of different sources. Changes in the composition of pensioners’ incomes reflect underlying economic factors.

In FYE 2023, benefit income, which includes State Pension, was the largest component of total gross income for both pensioner couples and single pensioners. This was 56% for single pensioners, while for pensioner couples it was 37%.

Income from occupational pensions was 32% of total gross income for pensioner couples and 26% for single pensioners.

Income from earnings made up six per cent of total gross income for single pensioners. For pensioner couples, 18% of total gross income was from earnings. Couples that contained one adult below SPa made up 26% of all pensioner couples. For some of these couples, the adult below SPa contributed to the earnings income. Where one partner was over SPa, and one was below, earnings income made up 41% of total gross income for pensioner couples. For couples where both partners were over SPa, this was only 8%.

See Tables 2.1, 5.1 and 5.3 for full data.

Older pensioners had lower incomes than younger pensioners on average

Average weekly income of pensioners (AHC) by age group in FYE 2023 prices (£)

In FYE 2023, pensioners where the head was under 75 had higher average incomes than those where the head was 75 or over. Their average incomes were £428 and £356 per week, respectively.

In FYE 2023, 60% of pensioners where the head was 75 or over were single pensioners. On average, single pensioners had lower incomes. The average income for single pensioners aged under and over 75 was similar. More information about single pensioners’ incomes can be found later in this section.

See Tables 1.2, 2.6 and 2.7 for full data.

Older pensioners were more reliant on benefit income

Percentage of gross mean income from different sources by age group, FYE 2023

Benefit income, which includes State Pension, made up 51% of total gross income for pensioners where the head was aged 75 or over and 37% of total gross income for pensioners where the head was aged under 75.

The proportion of total gross income that was made up of occupational pension income was similar for both pensioner groups. Occupational pension income accounted for 32% of total gross income for pensioners over 75 and 29% for those under 75. While occupational pension income was higher for the younger age group, this group also had higher overall income, resulting in the percentage contribution of their occupational pension income being slightly smaller.

Earnings income accounted for 21% for pensioners where the head was under 75 and where the head was aged 75 or over, it was five per cent. Older pensioners are less likely to be in work, which may explain why on average they receive a smaller amount from earnings.

See Table 2.7 for full data.

Single male pensioners continued to have higher incomes than single female pensioners

Average weekly income of pensioners (AHC) by gender in FYE 2023 prices (£)

Single male pensioners had higher average incomes than single female pensioners in FYE 2023. Single males had an average weekly income of £286 and single females had an average income of £259. This difference is statistically significant.

See Table 2.8 for full data.

Single female pensioners were more reliant on benefit income

Percentage of gross mean income from different sources by gender, FYE 2023

The difference in incomes between single male and single female pensioners reflects differences in the components that make up individuals’ total gross income.

In FYE 2023, benefit income, which includes State Pension, made up 62% of total gross income for single females. For single males, this value was 47%.

Occupational pension made up 29% of total gross income for single male pensioners. For female pensioners, this was 24%.

Income from earnings made up nine per cent of total gross income for single males. For single females, this was four per cent. Single female pensioners being older on average may be a contributing factor here, as they may be less likely to work.

See Table 2.8 for full data.

4. Regional differences

Pensioner incomes differed between regions and countries

When looking at regional incomes, we use the average weekly income (AHC) for each region over the three-year period FYE 2021 to FYE 2023, adjusted to FYE 2023 prices.

Average weekly income (AHC) of pensioner couples by region or country, relative to the UK average, FYE 2021 to FYE 2023

The UK average weekly income over the period FYE 2021 to FYE 2023 was £574 for pensioner couples.

In six regions/countries of the UK, pensioner couples had average weekly incomes below the pensioner couple UK average. On average, these were lowest in the North East, where incomes were 10% below the UK average, and Yorkshire and the Humber, where incomes were nine per below the UK average. The difference between Yorkshire and the Humber and the UK average is statistically significant.

Pensioner couples in the South East had the highest average income, 14% higher than the UK average. This difference is statistically significant.

Differences between regions are likely to be associated with demographic and economic variations, including housing costs. Please note that these estimates are based on a three-year average, which includes data from FYE 2021 and FYE 2022 during which data collection was affected by the COVID-19 pandemic.

See Table 2.4 for full data.

Average weekly income (AHC) of single pensioners by region or country, relative to the UK average, FYE 2021 to FYE 2023

In the period FYE 2021 to FYE 2023, single pensioners in the UK had an average income of £272 per week.

In seven regions/countries of the UK, single pensioners had average weekly incomes above the single pensioner UK average. The area with the highest average income for single pensioners was Wales, where incomes were 10% above the UK average, followed by seven per cent above the UK average for the East.

Single pensioners in London had the lowest average incomes. Their average income was six per cent below the UK average.

Differences between regions are again likely to be associated with demographic and economic variations, including housing costs. Please note that these estimates are based on a three-year average, which includes data from FYE 2021 and FYE 2022 during which data collection was affected by the COVID-19 pandemic.

See Table 2.4 for full data.

5. Sources of pensioners’ incomes

Percentage of pensioners receiving income from income-related benefits decreased

Percentage of pensioners receiving each source of income, FYE 1995, FYE 2010 and FYE 2023

Nearly all pensioners (98%) were in receipt of the State Pension in FYE 2023. This has increased from both FYE 1995 and FYE 2010, when 94% and 96% of all pensioners were in receipt of the State Pension respectively. The increases from FYE 1995 to FYE 2010 and from FYE 1995 and FYE 2010 to FYE 2023 are all statistically significant.

Income-related benefits were received by 21% of all pensioners in FYE 2023. The percentage of pensioners in receipt of income-related benefits decreased from 37% in FYE 1995, and 31% in FYE 2010. The decreases from FYE 1995 to FYE 2010 and from FYE 2010 to FYE 2023 are both statistically significant. The decrease from FYE 1995 to FYE 2023 is also statistically significant.

The percentage of pensioners in receipt of disability benefits in FYE 2023 was 19%, an increase compared to 14% in FYE 1995, though this figure was 23% in FYE 2010. The decrease from FYE 2010 to FYE 2023 is statistically significant, though the overall increase from FYE 1995 to FYE 2023 is also statistically significant.

Occupational pension income was received by 62% of pensioners in FYE 2023. FYE 1995 and FYE 2010 saw 57% and 60% respectively. The overall increase between FYE 1995 and FYE 2023 is statistically significant.

Personal pensions provided income to a smaller group of pensioners than occupational pensions. In FYE 2023, 17% of pensioners were in receipt of income from personal pensions, compared to 16% in FYE 2010 and four per cent in FYE 1995. The increase between FYE 1995 and FYE 2023 is statistically significant. Personal pensions in their current form were introduced in 1988.

Private pension income was received by 70% of pensioners in FYE 2023. FYE 1995 and FYE 2010 saw 59% and 69% respectively. The overall increase between FYE 1995 and FYE 2023 is statistically significant.

Investment income was received by 56% of all pensioners in FYE 2023. The percentage of pensioners in receipt of investment income has decreased from 70% in FYE 2010. This figure was 73% in FYE 1995. The decreases between FYE 1995 and FYE 2023 and between FYE 2010 and FYE 2023 are both statistically significant.

Pensioners in receipt of earnings in FYE 2023 was 15%, compared to 11% in FYE 1995, though this figure was 19% in FYE 2010. The decrease between FYE 2010 and FYE 2023 is statistically significant, as is the overall increase between FYE 1995 and FYE 2023. For some pensioner couples, one adult below SPa contributed to the earnings income.

More information about the distribution of income components for those in receipt in FYE 2023 can be found below.

See Tables 3.5 – 3.12 for full data.

Distribution of income from selected income sources for all pensioners in receipt, FYE 2023 (£ per week)

State Pension

Almost all pensioners (98%) received income from State Pension, with an average amount of £198 per week. Some peaks in the distribution may be explained by the basic State Pension rate, which was £141.85 per week in FYE 2023, as well as the new State Pension full rate, which was £185.15.

For more information on State Pension rates, see the benefit and pension rates for 2022 to 2023.

See Tables 3.5 and 6.2 for full data.

Income-related benefits

The percentage of pensioners in receipt of income-related benefits in FYE 2023 was 21%. The average income for those in receipt of income-related benefits in FYE 2023 was £94 per week. Of those pensioners in receipt, 10% had income-related benefit income of less than £10 per week.

For more information on income-related benefits, see the benefit and pension rates for 2022 to 2023.

See Tables 3.6 and 6.3 for full data.

Disability benefits

Those receiving disability benefits made up 19% of all pensioners. The average income for those in receipt was £91 per week. Some benefits have set rates, which may explain peaks in the distribution. For example, Attendance Allowance had a lower rate of £61.85 per week and a higher rate of £92.40 per week in FYE 2023.

For more information on Attendance Allowance, see the benefit and pension rates for 2022 to 2023.

See Tables 3.7 and 6.4 for full data.

Occupational pension income

The percentage of pensioners in receipt of occupational pension income was 62%. The average amount for these pensioners was £210 per week. Of those pensioners in receipt of occupational pension income six per cent received £900 or more per week.

See Tables 3.8 and 6.5 for full data.

Personal pension income

The percentage of pensioners in receipt of income from a personal pension was 17%, with an average of £63 per week. Of those pensioners, 30% had personal pension income of less than £30 per week.

See Tables 3.9 and 6.6 for full data.

Private pension income

The percentage of pensioners in receipt of income from a private pension was 70%. The average amount for those in receipt was £199 per week. Of those in receipt, five per cent had private pension income of £1,000 or more per week.

See Tables 3.10 and 6.7 for full data.

Investment income

The percentage of pensioners in receipt of investment income was 56%, with an average income of £3 per week. Of pensioners in receipt, 10% had an investment income of £200 or more per week.

See Tables 3.11 and 6.8 for full data.

Earnings income

The percentage of pensioners in receipt of earnings income was 15%, with an average income of £401 per week. Of pensioners in receipt of income from earnings, 19% had income of £1,000 or more per week.

See Tables 3.12 and 6.9 for full data.

6. Distribution of pensioners’ incomes

This section looks at the distribution of pensioners’ incomes and where different groups of pensioners sit within it. To do this, pensioners’ incomes are ranked in order, and then the ranked pensioner population is divided into five equal groups of 20%. The top fifth had the highest incomes and the bottom fifth had the lowest. This is calculated separately for couples and single pensioners.

Pensioners’ position within the pensioner income distribution varied by age for couples

Percentage of pensioners, by age of head, in each fifth of the pensioner couples net income (AHC) distribution, FYE 2023

In FYE 2023, 20% of pensioner couples where the head was 75 or over were in the bottom fifth of the pensioner couples’ income distribution. The percentage of pensioner couples where the head was 75 or over decreases from the second quintile, while the percentage of pensioner couples where the head was under 75 increases. The top fifth of the income distribution contained 15% of pensioner couples where the head was 75 or over. Of couples where the head was under 75, 23% of couples were in the top fifth. This difference is statistically significant.

See Table 4.2 for full data.

Pensioners’ position within the pensioner income distribution was similar by age for singles

Percentage of pensioners, by age, in each fifth of the pensioner singles net income (AHC) distribution, FYE 2023

For single pensioners, their distribution across the pensioner singles income distribution was very even, with little or no difference between those aged under 75 and 75 or over until the top fifth of the distribution. Here there were 21% of single pensioners aged under 75 and 19% of singles pensioners aged 75 or over.

See Table 4.2 for full data.

The sources of pensioners’ incomes differed across the income distribution

Percentage of gross mean income from different sources for couples and singles in the top and bottom fifths of the pensioner couples or singles net income (AHC) distribution, FYE 2021 to FYE 2023

Benefit income, including State Pension income, was the largest source of income for both single pensioners and couples in the bottom fifth of the income distribution over the three-year period FYE 2021 to 2023. For pensioner couples in the bottom fifth, benefit income accounted for 78% of income, while for single pensioners this was 86%.

For the top fifth of both couples and singles, the largest source of income was occupational pension income (39% for couples and 43% for singles). For both couples and singles, the top fifth of the income distribution received a larger percentage of their income from earnings (24% for couples and 12% for singles), and investment (16% for couples and 12% for singles) than any other quintile.

Please note that these estimates are based on a three-year average, which includes data from FYE 2021 and FYE 2022 during which data collection was affected by the COVID-19 pandemic.

See Table 4.4 for full data.

7. Pensioners’ incomes within the overall income distribution

When looking at the position of individuals in pensioner units within the income distribution of the overall population, we use equivalised income. This means that incomes are adjusted to take account of the size and composition of households. This is the approach used in the HBAI report, which analyses the overall household income distribution.

The percentage of pensioners in the top fifth of the overall population income distribution has increased since 1995

Percentage of pensioners in each fifth of the overall population income distribution (AHC), using equivalised income, FYE 1995, FYE 2010 and FYE 2023

Fewer pensioners were in the bottom fifth of the overall income distribution in FYE 2023 compared to FYE 1995, and more were in the top fifth.

The percentage of pensioners in the bottom fifth was 19% in FYE 1995. In FYE 2023, 15% of pensioners were in the bottom fifth. This difference is statistically significant.

In FYE 1995, 13% of pensioners were in the top fifth of the overall income distribution. This increased to 17% in FYE 2023. This difference is statistically significant.

See Table 4.6 for full data.

Percentage of pensioners in the top half of the overall population income distribution in FYE 2023 was 49%

Percentage of pensioners in the top half of the overall population income distribution (AHC) by family type, using equivalised income, FYE 1995 to FYE 2023

In FYE 2023, 49% of pensioners were in the top half of the overall income distribution. In FYE 1995, this percentage was 38%. This difference is statistically significant. A period of sustained increases was observed from FYE 2003 to FYE 2013, where pensioners in the top half of the overall income distribution rose from 38% to 52%.

The percentage of pensioner couples in the top half of the income distribution was 44% in FYE 1995. In FYE 2023, this was 53%. This difference is statistically significant.

The percentage of single pensioners in the top half of income distribution was 39% in FYE 2023. In FYE 1995, this was 29%. This difference is statistically significant.

See Table 4.7 for full data.

8. About these statistics

How do we measure income?

The main income measure used in PI is weekly net disposable unequivalised income, calculated for both BHC and AHC. Estimates should therefore only be regarded as broadly indicative of pensioners’ overall living standards. BHC income comprises total income from all sources for all members of the pensioner unit.

Income is net of:

• income tax payments and National Insurance contributions

• domestic rates or council tax

• contributions to pension schemes

• all maintenance payments

• student loan repayments

• parental contributions to students living away from home.

Income AHC is derived by deducting a measure of housing costs from the overall income measure.

Housing costs include:

• rent (gross of housing benefit)

• water rates, community water charges and council water charges

• mortgage interest payments

• structural insurance premiums

• ground rent and service charges.

When looking at individual income components, figures are calculated from gross income.

Accredited official statistics

National Statistics are accredited official statistics.

These accredited official statistics were independently reviewed by the Office for Statistics Regulation (OSR) in November 2012. The continued accreditation of these statistics as National Statistics was confirmed in September 2022 following a compliance check by the OSR. They comply with the standards of trustworthiness, quality, and value in the Code of Practice for Statistics and should be labelled ‘accredited official statistics’. Accredited official statistics are called National Statistics in the Statistics and Registration Service Act 2007.

OSR introduced the term ‘Accredited Official Statistics’ to describe National Statistics in September 2023. This was done following OSR’s review of the National Statistics designation and subsequent designation refresh project, which found the term ‘National Statistics’ was not well understood by users of statistics.

You are welcome to contact us directly with any comments about how we meet these standards. Alternatively, you can contact OSR by emailing regulation@statistics.gov.uk or via the OSR website.

Key improvements, in this release and previous releases, include:

• improved background information and methodology

• new release strategy

• move to HTML and a more accessible release

• data available on Stat-Xplore and the UK Data Service, which makes our statistics are more accessible and support new analysis for users not included in the publications themselves

• recognition of the effect on our estimates, caused by changes to source data during the coronavirus (COVID-19) pandemic

• added new tables in response to user needs.

Where to find out more

Further outputs and data tables from PI analysis, alongside our PI Background information and methodology, which gives additional detail on how we estimate the measures reported here, are available on this year’s PI web page for this release.

Analysis of PI data from previous years, as well as further guidance and information about the statistics, is also available on the PI web page.

Details of other Official Statistics produced by DWP can be found on the DWP website:

• a schedule of statistical releases over the next 12 months and a list of the most recent releases

• all DWP Official Statistics are also announced in accordance with the Code of Practice for Statistics.

Information on alternative sources of data on income and earnings are available on the ONS website, including an income and earnings interactive tool where you can filter by government department and country of interest to find relevant statistics.

Further information about the statistics produced on income and earnings by government departments can also be found on the ONS website.

Enquiries and feedback

DWP would like to hear your views on our statistical publications. If you use any of our statistics publications, we would be interested in hearing what you use them for and how well they meet your requirements. Please send your comments by email to: pensioners-incomes@dwp.gov.uk

Feedback on the content, relevance, accessibility and timeliness of these statistics and any non-media enquiries should be directed by email to: pensioners-incomes@dwp.gov.uk

For media enquiries on these statistics, please contact the DWP press office

Lead Statistician: Joanne Burrage

Publication Lead: Yente Meijers

Publication Team: Owusu Appiah, Sophie Rae, John Bilverstone and Luke Scorer

ISBN: 978-1-78659-614-7

Next edition: March 2025

Note, our statistical practice is regulated by the Office for Statistics Regulation (OSR).