A new report from Clerical Medical has found that private pensions have grown at three times the rate of state pensions since 1979. The research also found that the average pensioner household income had risen from £47 per week in 1979 to £306 a week in 2004. In that time, state pensions increased in real terms by 40%, while private pensions increased by 121%.
Almost 70% of retired households now rely on their private incomes to supplement the cost of living, compared to just 40% in 1979.
Our view
This just goes to prove that more of us have greater opportunities for planning for retirement. It is not that the State Pension has worsened, it is the fact that since 1979 many different types of pension scheme have become available and people are able to save when perhaps it was more difficult in 1979.
Learn more about pensions in the Pensions Adviser.com.
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