Marvin OnumonuThe Department for Work and Pensions’ (DWP’s) latest Pensioners’ Income Series showed average weekly incomes for pensioners grew by 4% over the year, rising from £439 to £455 between FYE 2024 and FYE 2025.
This followed an 8.5% increase to the State Pension in 2024/25.
After housing costs, this meant an estimated jump in annual income of £832, from around £22,828 to around £23,660.
Benefit income, including the State Pension, remained the largest part of gross income for both pensioner couples and single pensioners in FYE 2025.
This made up 58% of single pensioners’ income, down from 59% the previous year, and 40% for couples, up from 39%.
Damon Hopkins, head of DC workplace savings at Broadstone, said: “These figures show that pensioner incomes are starting to grow after a few years of plateauing with average incomes rising by over £800 a year.
“However, the composition of income is arguably more important than the headline numbers with a large proportion of pensioner income – particularly for single pensioners – still coming from the State Pension and other benefits.
“Indeed, the increase in incomes seen in the latest figures is largely likely to be down to the impact of the Triple Lock which delivered a significant 8.5% increase to the State Pension in FYE 2025.”
Hopkins added: “It further underlines how important workplace pension saving will be for the majority of workers coming through the current system.
“The State Pension provides a foundation, but on its own it is unlikely to deliver a comfortable retirement income.
“The data also highlights a clear divide between single pensioners and pensioner couples. Single pensioners remain heavily reliant on State Pension and benefit income, whereas pensioner couples are more likely to have occupational and private pension income.”
He said: “This is important because it highlights how those with private pension savings are less reliant on future increases in the State Pension to reach an adequate standard of living in retirement.”
