Pensions provide only ‘modest’ income

The latest findings from the Office for National Statistics (ONS) suggest that combined state and private pensions still provide most pensioners with only a ‘modest’ income.

In 2005/06, 62% of pensioner couples had less £10,000 in pension income and half of single pensioners had income from pensions of less than £6,000.

Pensioners are also still relying heavily on the state pension. While the average pensioner couple had state pension and benefits worth £7,296, their average income from private pension sources was just £2,115.

However, the Department for Work and Pensions (DWP) claims that pensioners are still substantially better off than they were 10 years ago.

ONS research from December 2007 shows that pensioner income from all sources outstripped inflation by a third in the decade to 2005/06.

"We've lifted more than a million pensioners out of poverty by targeting help to those who need it most. Pension Credit guarantees an income of £124 a week compared with £69 a week in 1997" said a spokeswoman for the DWP.

Meanwhile, the Government has given greater powers to the Pensions Regulator to protect pension schemes in companies which are bought up by other specialist forms.

The past few years have seen a growing trend for buy-out firms to take over unwanted pension schemes to make a profit for their investors. Now the Regulator will be able to insist that such companies can be forced to make extra contributions to those pension funds if they reduce the level of security.