Retirees better off since the financial crisis - Annuities - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Retirees better off since the financial crisis

Retirees better off since the financial crisis

Category: Annuities

Updated: 03/12/2013
First Published: 03/12/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Figures released by the Office for National Statistics (ONS) have revealed that, despite working families seeing a drop in real income since the financial crisis hit, many retired households have actually seen an increase of some £900 per year.

According to the research, the median income for working households dropped by 6.4% between 2007/08 and 2011/12, while for retired households their median income grew by an average of 5.1% over the same period – to £19,253.

This is still lower than the average figure for working households, which comes in at £25,671, but the fact that retirement income has actually grown since the recession should offer some good news for those getting close to retirement age who might be wondering how they're going to fund their golden years.

Better incomes for retirees, say the ONS, can be largely attributed to a combination of an increase to the state pension for some (a growth of 9% for the middle fifth of retired households) and higher incomes from private pensions (which grew by 22%), with many retirees having bigger pension pots as well as better-value annuities.

This steady growth in income not only means a lot of retirees are now better off than they were a few years ago, but it highlights the importance of finding the right annuity too. Comparing several options is vital as it can ensure that higher income can be achieved, with those approaching retirement age being urged to thoroughly check the market to find the best value annuity possible.

What Next?

Increase your income in retirement by up to 40% using our online annuity planner

Looking to speak to an expert about your retirement options? Call our partner Premier Retirement Services directly on: 01737 233435

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Want an annuity? Your provider will help you pick

Buying an annuity can be fraught with difficulty, but what if you still want a guaranteed income? The regulator is stepping in, so it should soon be easier to find the annuity that meets your needs – because your provider is going to help.

Annuity rates rally after tough few months

Good news for those seeking a secure income in retirement: our latest analysis has revealed that annuity rates are staging a mini revival after suffering from heavy falls in recent months, so you’ll now be able to get slightly more from your savings.

Secondary annuity market scrapped

The Government is cancelling plans for a secondary annuity market, citing concerns about consumer protection. Given there were fears that many could be ripped off – and that it wouldn’t be right for most – the decision has been largely welcomed.