Map shows extent pensioner incomes have soared

The latest budget brought significant changes to the way British pensioners are able to earn and save money for retirement. Overall it was good news, and those squaring up to retirement can now breathe a further sigh of relief in knowing that pensioner incomes have increased over the past few decades – although people are far better off in some UK regions than others. Here, Express.co.uk breaks down the numbers below.

On Tuesday, Bank of England Governor Andrew Bailey hit out at early retirees, suggesting they were “part of the reason” why interest rates had to be raised to 4.25 percent last week. 

The number of people classed as economically inactive – people between the ages of 16 and 64 neither in nor looking for work – has increased by roughly half a million since the eve of the pandemic to just under nine million, but remains well below the 2011 peak.

For pensioners who have paid off their mortgage and have the bulk of their wealth in savings or bonds, higher interest rates mean their cash piles generate more money each year. Jeremy Hunt’s Spring Budget 2023, unveiled earlier this month, added further benefits for retirees.

The annual allowance determining the amount of tax-free pension contributions someone can make in a year was raised to £60,000, and the lifetime allowance meaning all pots larger than £1million were heavily taxed was scrapped altogether.

This all comes as new data reveal just how relatively well pensioners have weathered the turmoil of the past year.

READ MORE: DWP confirms millions to get first cost of living payment from April

Younger pensioners – aged below 75 – were found to have higher average incomes than those on the older end of the scale, by £389 to £322 respectively.

Among single pensioners, the gender pay gap persisted into retirement, with men earning £254 on average each week, 9.5 percent more than women on £232.

Weekly incomes also varied significantly across the UK. For pensioner couples, weekly earnings after housing costs were found to be highest in the South East at £598, and lowest in the North East at £470.

For single pensioners, however, when factoring in the high living costs of London, the capital was where weekly incomes were lowest, at just £218 – relative to a high of £270 in Wales.