The median annual gross household income of retired individuals for 2023/24 increased slightly to £32,328, up from £32,302 the previous year. However, that remains down on 2020/21 when median gross incomes for retirees was £33,337 while the median gross income has been above £30,000 since 2013/14.
It is a similar story for retirees’ median disposable incomes which again saw a minimal uptick of £74 a year in 2023/24 rising from £29,654 to £29,728. This is a lower average annual disposable income than both 2020/21 (£30,286) and 2015/16 (£29,853).
David Brooks, Head of Policy at Broadstone, said: “At a time when debate continues to rage around pensioner benefits and the State Pension, it is interesting to see that median gross and disposable incomes for retirees have remained essentially stagnant, or even decreased, since the pandemic.
“It reflects the significant financial challenges posed by the cost-of-living crisis and potentially the beginning of more people entering retirement with less generous defined contribution pensions. These trends both remain prevalent, suggesting that any move to means-test the State Pension or remove the Triple Lock could noticeably and negatively impact pensioners’ incomes and, consequently, their standard of living.”
ONS Effects of taxes and benefits on UK household income: financial year ending 2024
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