Retired households in the UK are close to £600 worse off than in 2020 despite the protection of the triple lock. New data shows that pensioners now have less disposable income due to rising living costs.
According to the data from the Office for National Statistics (ONS), retired Brits had an average disposable income of £29,728 in 2023/2024. This was £558 a year less than in 2020/2021. Meanwhile, the average gross household income for retired people was £32,328 in 2023/2024, up from £33,337 in 2020/21.
As reported by GB News, pensioners also now have less disposable income to cover everyday costs such as food, bills and leisure. David Brooks, head of policy at independent consultancy Broadstone, warned that the financial circumstances of older people have « remained essentially stagnant, or even decreased, since the pandemic. »
Mr Brooks said both the cost of living crisis and less generous pension schemes « remain prevalent » to the trend.
He added: « 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. »
The latest statistics come after bombshell analysis revealed around half a million pensioners could lose their Winter Fuel Payments in the next four years. Retirees with income over £35,000 currently do not receive the payment which is worth up to £300.
As the State Pension is expected to rise by 4.7% next April, alongside other pensions in line with inflation, over 100,000 pensioners could find themselves above the threshold next year. This could rise to almost 500,00 by the end of this parliament in 2029.
Rachel Reeves initially scrapped the Winter Fuel Payment within weeks of becoming Chancellor. However, she was forced into a U-turn following backlash, which means all pensioners now get the benefit unless their annual income is above a £35,000 threshold.
A Government spokesperson said: « It is right that fuel support is targeted, and the threshold means the vast majority of pensioners will benefit from a Winter Fuel Payment this winter.
« On top of this, our commitment to the Triple Lock – which we have just reaffirmed – means millions of pensioners will see their State Pension rise by £1,900 over the course of this parliament.
« And thanks to our efforts to boost Pension Credit take up, over 57,000 extra pensioner households were awarded the benefit, worth on average £4,300 a year. »
