Private pension income gap grows for retirees

There is a growing gap between the incomes of those retiring with private pension income and those without, according to new analysis.

Between 1977 and the financial year ending 2016, the disposable income of retired households increased at an average annual rate of 2.8 per cent after taking into account inflation and changes to household composition, the Office for National Statistics said.

Sky reports that by 2016, retired households with a private pension had disposable incomes that were around 1.6 times higher than those that relied on the state pension.