Pensioner income

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Last updated 4 March 2018 - see all updates

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1. Main facts and figures

  • in the period from 2013/14 to 2015/16, the average pensioner household received £507 a week in total income before deductions

  • White British and White Other pensioner households had the highest average income, and Black pensioner households had the lowest

  • compared with other ethnic groups, White British pensioner households were the most likely to receive income from occupational pensions, personal pensions, and investments (jointly with White Other pensioner households) – and they were the least likely to receive income from income-related benefits

  • Asian pensioner households consistently received the lowest income from the State Pension over the period studied

Things you need to know

To increase the reliability of the data, which is taken from the Family Resources Survey (FRS), the Department for Work and Pensions (DWP) takes 3 years’ worth of data and works out the average for that period. It does that every year, so each year there’s a new 3-year average. The published data for the period from 2013/14 to 2015/16 is an average of the data for 2013/14, 2014/15 and 2015/16.

While this type of survey methodology increases the reliability of the data, it means that tests for significant differences between ethnic groups have not been carried out. However, commentary has been supplied for those findings where differences between ethnic groups are reasonably reliable.

These statistics are estimates based on the sample of people who took part in the survey (around 7,000 pensioner households) and may not reflect the whole population. You should therefore use caution when interpreting them.

The data has not been recalculated to take into account any differences in household size and composition (known as ‘equivalisation’). For this reason, the data isn’t comparable with data on income that has been equivalised.

The FRS has been shown to under-report the number of people receiving benefits compared to administrative records held by DWP. For this reason, the percentages given here are likely to be slightly lower than the actual percentage of benefits claimants in the population.

Each household is categorised according to the ethnicity of the head of the household. Because households may also contain members of other, different ethnic groups, this data does not reflect the distribution of household income by individual ethnicity.

The FRS only covers private households. This means that individuals who live in communal accommodation (for example, care homes) or have no fixed address (for example, the homeless) are not included in these results.

What the data measures

The data measures the sources and amounts of gross income for pensioner households in the UK. Gross income is the amount a household receives from all sources before tax and National Insurance is deducted.

A pensioner household can be either:

  • a single person over State Pension age living alone
  • a couple (married or living together) where at least one person is over State Pension age

The Department for Work and Pensions (DWP) uses the term ‘benefit unit’ to refer to a family unit made up of a single adult, or a married or cohabiting couple (including same-sex partners), plus any dependent children.

These benefit units are categorised according to the ethnicity of the ‘head of benefit unit’ (usually the person with the highest income).

The data does not include income from others in a household. For example, if a pensioner lives with their adult non-dependent children, or any non-related adults or children, the others’ income is not included.

Income-related benefit is means-tested and dependent on level of income and savings. Types of income-related benefit include Housing Benefit, Pension Credit, local Council Tax support, and social fund payments (like Budgeting Loans). Most benefits are administered by the DWP. Housing Benefit and local Council Tax support are administered by local authorities.

The ethnic categories used in this data

For this data, the number of people surveyed (the ‘sample size’) was too small to draw any firm conclusions about specific ethnic categories.

Therefore, the data is broken down into the following 5 broad groups:

  • Asian/Asian British
  • Black/Black British
  • White British
  • White Other (White ethnic minorities)
  • Other (including people of Mixed ethnicity)

2. Pensioner households' income sources by ethnicity

Location:
United Kingdom
Time period:
2013/14 to 2015/16
Source:
Pensioners’ incomes series: financial year 2015/16
Percentage of pensioner households receiving different income sources by ethnicity
Income source All Asian Black White British White other Other
% % % % % %
Receiving income from benefits (including State Pension) 100 99 100 100 100 100
Receiving income from State Pension 97 89 91 98 87 88
Receiving income from income-related benefits 26 36 44 25 34 34
Receiving income from disability benefits 20 20 22 20 17 17
Receiving occupational pension income 62 34 48 64 49 47
Receiving personal pension income 18 9 8 19 14 10
Receiving investment income 64 39 31 65 59 53
Receiving income from earnings 17 17 16 17 19 21
Receiving other income 46 41 46 46 44 37

Download table data for ‘Pensioner households' income sources by ethnicity’ (CSV) Source data for ‘Pensioner households' income sources by ethnicity’ (CSV)

Summary of Pensioner income Pensioner households' income sources by ethnicity Summary

This data shows that:

  • overall, 97% of pensioner households received income from the State Pension – other common sources of income were investments (at 64% of all households) and occupational pensions (at 62%)

  • the least common sources of income, on average, were earnings (at 17% of all pensioner households), personal pensions (at 18%) and disability benefits (at 20%)

  • Black pensioner households were the most likely to receive income-related benefits (at 44%) compared with other ethnic groups, and White British pensioner households were the least likely (25%)

  • White British pensioner households were the most likely to receive income from investments, occupational pensions and personal pensions (at 65%, 64% and 19% respectively)

  • Asian pensioner households were the least likely to get income from an occupational pension (at 34%); Black households were least likely to get income from a personal pension (at 8%) or investments (31%)

3. Pensioner households' total income by ethnicity and source of income

Location:
United Kingdom
Time period:
2013/14 to 2015/2016
Source:
Pensioners’ incomes series: financial year 2015/16
Pensioner households' gross weekly income by ethnicity and source of income
Income source All Asian Black White British White other Other
£ £ £ £ £ £
Gross income value 507 395 370 513 460 520
Income from earnings 83 90 74 82 98 126
Investment income 41 24 5 42 42 39
Income from occupational pension 145 78 73 149 103 123
Personal pension income 20 5 6 20 17 15
Income from State Pension 170 126 130 172 142 144
Income from income-related benefits 22 42 55 21 36 46
Income from disability benefits 16 16 18 16 13 14
Income from other sources 4 6 2 4 4 5

Download table data for ‘Pensioner households' total income by ethnicity and source of income’ (CSV) Source data for ‘Pensioner households' total income by ethnicity and source of income’ (CSV)

Summary of Pensioner income Pensioner households' total income by ethnicity and source of income Summary

This data shows that:

  • the average pensioner household received £507 a week in total income (before tax and National Insurance was deducted) in the period studied

  • White British pensioner households, and those from the Other ethnic group, had the highest total average weekly income (at £513 and £520 respectively), and Black pensioner households had the lowest (at £370)

  • weekly income from the State Pension was highest for White British pensioner households (at £172) and lowest for Asian pensioner households (at £126)

  • White British pensioner households had the highest weekly average income from occupational pensions (at £149) and personal pensions (at £20), compared with other ethnic groups; they also had the joint highest weekly income from investments (£42) along with pensioner households from the Other White ethnic group

  • Black pensioner households received the highest weekly average income from income-related benefits (£55) and disability benefits (£18), compared with other ethnic groups

4. Pensioner households' total income by ethnicity over time

Location:
United Kingdom
Time period:
2008/09 to 2015/16
Source:
Pensioners’ incomes series: financial year 2015/16
Pensioner households' total gross weekly income by ethnicity over time
Ethnicity 2008/09; 2009/10; 2010/11 2009/10; 2010/11; 2011/12 2010/11; 2011/12; 2012/13 2011/12; 2012/13; 2013/14 2012/13; 2013/14; 2014/15 2013/14; 2014/15; 2015/16
£ £ £ £ £ £
All 492 498 493 491 500 507
White British 495 501 497 495 505 513
White other 477 486 467 462 457 460
Black 464 471 385 352 369 370
Asian 397 412 409 425 420 395
Other 420 457 542 572 561 520

Download table data for ‘Pensioner households' total income by ethnicity over time’ (CSV) Source data for ‘Pensioner households' total income by ethnicity over time’ (CSV)

Summary of Pensioner income Pensioner households' total income by ethnicity over time Summary

This data shows that:

  • overall, between 2008/09 and 2015/16, the average total weekly income for pensioner households increased from £492 to £507

  • however, the average total weekly income decreased in the same period for Black pensioner households (from £464 to £370), Other White pensioner households (from £477 to £460), and Asian pensioner households (from £397 to £395)

  • there were increases in average total weekly income for White British pensioner households (from £495 to £513) and pensioner households from the Other ethnic group (from £420 to £520)

5. Pensioner households' income from the State Pension by ethnicity over time

Location:
United Kingdom
Time period:
2008/09 to 2015/16
Source:
Pensioners’ incomes series: financial year 2015/16
Pensioner households' gross weekly income from the State Pension by ethnicity over time
Ethnicity 2008/09; 2009/10; 2010/11 2009/10; 2010/11; 2011/12 2010/11; 2011/12; 2012/13 2011/12; 2012/13; 2013/14 2012/13; 2013/14; 2014/15 2013/14; 2014/15; 2015/16
£ £ £ £ £ £
All 157 160 162 164 167 170
White British 158 162 164 167 170 172
White other 145 140 138 138 144 142
Black 136 141 130 128 125 130
Asian 124 121 116 115 123 126
Other 131 134 125 133 135 144

Download table data for ‘Pensioner households' income from the State Pension by ethnicity over time’ (CSV) Source data for ‘Pensioner households' income from the State Pension by ethnicity over time’ (CSV)

Summary of Pensioner income Pensioner households' income from the State Pension by ethnicity over time Summary

This data shows that:

  • overall, between 2008/09 and 2015/16, the average weekly income from the State Pension for pensioner households increased from £157 to £170

  • however, the average weekly income from the State Pension decreased in the same period for Black pensioner households (from £136 to £130) and Other White pensioner households (from £145 to £142)

  • there were increases in the average weekly income from the State Pension for White British pensioner households (from £158 to £172), Asian pensioner households (from £124 to £126) and pensioner households from the Other ethnic group (from £131 to £144)

6. Pensioner households' income from occupational pensions by ethnicity over time

Location:
United Kingdom
Time period:
2008/09 to 2015/16
Source:
Pensioners’ incomes series: financial year 2015/16
Pensioner households' gross weekly income from occupational pensions by ethnicity over time
Ethnicity 2008/09; 2009/10; 2010/11 2009/10; 2010/11; 2011/12 2010/11; 2011/12; 2012/13 2011/12; 2012/13; 2013/14 2012/13; 2013/14; 2014/15 2013/14; 2014/15; 2015/16
£ £ £ £ £ £
All 123 129 132 136 140 145
White British 125 131 134 139 143 149
White other 109 115 105 97 100 103
Black 105 102 81 75 74 73
Asian 74 80 76 83 86 78
Other 76 78 107 136 139 123

Download table data for ‘Pensioner households' income from occupational pensions by ethnicity over time’ (CSV) Source data for ‘Pensioner households' income from occupational pensions by ethnicity over time’ (CSV)

Summary of Pensioner income Pensioner households' income from occupational pensions by ethnicity over time Summary

This data shows that:

  • overall, between 2008/09 and 2015/16, pensioner households' average weekly income from occupational pensions increased from £123 to £145

  • however, the average weekly income from occupational pensions decreased in the same period for Black pensioner households (from £105 to £73) and Other White pensioner households (from £109 to £103)

  • there were increases in the average weekly income from occupational pensions for White British pensioner households (from £125 to £149), Asian pensioner households (from £74 to £78) and pensioner households from the Other ethnic group (from £76 to £123)

7. Methodology

The Family Resources Survey (FRS) is a continuous household survey which collects information on a representative sample of private households in the United Kingdom. Detailed information is recorded on respondents’ income from all sources:

  • housing tenure
  • caring needs and responsibilities
  • disability
  • expenditure on housing
  • education
  • pension scheme participation
  • childcare
  • family circumstances
  • child maintenance

The survey is conducted in respondents’ homes face to face with an interviewer.

In the latest 3-year period, 2013/14 to 2015/16, the FRS sample consisted of almost 60,000 households in the UK. It has a financial-year survey period with surveys conducted throughout the year and is cross-sectional (a ‘snapshot’ of households over the year). Individuals are not followed up for later surveys. Since responses reflect only a sample of the total population, they are weighted (scaled-up) on the basis of subnational population totals by age and sex to give estimates for the entire UK household population.

Estimates are subject to sampling error and non-sampling bias. The FRS only covers private households. Therefore, individuals who live in communal accommodation (for example, care homes) or have no fixed address (for example, who are homeless) are not included in these results.

The data has not been recalculated to take into account any differences in household size and composition (known as ‘equivalisation’). Equivalisation adjusts incomes for household size and composition, taking an adult couple with no children as the reference point. For example, the process of equivalisation would adjust the income of a single person upwards, so their income can be compared directly to the standard of living for a couple.

In the pensioners’ incomes series, income is usually shown for single pensioners and pensioner couples separately. The benefit income of dependent children is included in estimates, but this was only relevant for 1 per cent of pensioner households.

This measure does not include any commentary on living standards or net income. You can find data on income before and after housing costs have been deducted in the data tables in the Pensioners’ incomes series.

Suppression rules and disclosure control

Any values based on fewer than 100 responses have been suppressed.

Rounding

Percentages are given to the nearest whole percentage point, and income is rounded to the nearest whole pound. Due to this rounding, some figures may not add up.

Quality and methodology information

8. Data sources

Source

Type of data

Survey data

Type of statistic

National Statistics

Publisher

Department for Work and Pensions

Publication frequency

Yearly

Purpose of data source

The primary purpose of the Family Resources Survey (FRS) is to provide the Department for Work and Pensions (DWP) with data to inform the development, monitoring and evaluation of social welfare policy.

The survey is used by many other government departments, and for tax and benefit policy modelling by HM Treasury and HM Revenue and Customs. The FRS is also used extensively by academics and research institutes for social and economic research.

The pensioners’ incomes series contains estimates of the levels, sources and distribution of pensioners’ incomes. It also compares pensioners’ incomes with those of the population as a whole.

9. Download the data

Pensioner_income_sources - Spreadsheet (csv) 213 KB

This file contains the following: ethnicity, year, value

Publication release date: 13 November 2017

Updated: 4 March 2018

full page history
  1. minor corrections for style
  2. Minor updates for style and accuracy
  3. Minor updates for style and accuracy
  4. First published

From: Department for Work and Pensions

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