Old better off than young as pensioner household incomes 'OVERTAKE those of working age'
PENSIONER household incomes have overtaken those of working age equivalents for the first time, a study has found.
Low growth for working households has come at the same time as a surge in pensioner wealth
Elderly spending power has been boosted by a new wave of pensioners who tend to still be in work, own a home and receive generous pension pots, analysis by the Resolution Foundation shows.
The As Time Goes By study found low growth for working households has coincided with a surge in pensioner wealth.
Pensioner households are now £20 a week better off than working age ones.
Adam Corlett, economic analyst at the Resolution Foundation, said: “One of the most intriguing aspects of the recent living standards story across Britain has been typical pensioner household incomes overtaking working age households for the first time.
Pensioner households are now £20 a week better off than working age ones
“This has led some to assume that all pensioners are enjoying some kind of boom amid the painful squeeze for everyone else.
Of course, not all pensioners can draw on these income sources
"The reality is quite different - the incomes of individual pensioners grow relatively slowly, particularly once they've stopped working.
“Instead, the main driver of pensioner income growth has been the arrival of successive new waves of pensioners, who are more likely to work, own their home and have generous private pension wealth than any previous generation.
Elderly wealth has been boosted by a wave of pensioners who stay in work and own a home
Martin Lewis gives advice on child benefits and pensions
“Of course, not all pensioners can draw on these income sources, which is why the state pension will always be the main income for many pensioners.
"We can't assume either that young people today will be able to draw upon the kind of wealth that recent pensioners have accumulated, given the recent fall in home ownership and decline in generous defined benefit schemes.
“The big challenge we face as a society is to ensure that the record incomes that a new generation of pensioners are enjoying are not a one-off gift, and can endure for future generations too.“