Pensioners (Hansard, 7 May 1993)

§ Mr. Bradley

To ask the Secretary of State for Social Security, pursuant to his answer of 4 March, to the hon. Member for Hertfordshire, North (Mr. Heald),Official

Table 1
The average incomes of pensioners 1979–1989 (by quinlile—quintile 1 = lowest)
(a) Single pensioners
Average income (£ per week, 1989 prices)
	Quintile 1	Quinlile 2	Quintile 3	Quinlile 4	Quinlile 5	Total
Income source	1979	1989	1979	1989	1979	1989	1979	1989	1979	1989	1979	1989
Earnings^*	0.30	0.10	0.10	0.30	0.30	0.20	3.10	1.90	20.80	18.10	4.90	4.10
Benefit income	42.20	46.50	49.10	54.90	51.50	62.40	51.10	59.40	46.30	52.00	48.00	55.00
Investment income	1.70	2.60	1.80	4.00	2.00	2.70	5.80	9.10	27.30	66.90	7.70	17.00
Occupational pension	0.50	1.50	1.60	3.10	2.80	5.50	6.60	15.60	30.70	61.40	8.40	17.40
Other^*	0.40	0.10	0.10	0.30	0.20	0.20	0.80	0.50	0.80	0.90	0.50	0.40
Gross income	45.20	50.70	52.70	62.60	56.70	71.00	67.30	86.40	125.90	199.20	69.50	93.90
Deduction	4.70	8.20	3.90	7.50	3.60	7.40	6.00	10.60	24.50	41.80	8.50	15.10
NET INCOME (BHC) MEAN	40.50	42.50	48.80	55.10	53.10	63.50	61.30	75.80	101.50	157.40	61.00	78.80
NET INCOME (AHC) MEAN	31.70	30.90	39.40	43.20	42.60	47.80	49.50	64.50	89.00	149.50	50.40	67.10
NET INCOME (BHC) MEDIAN	41.80	44.00	49.90	55.70	55.30	64.70	61.70	74.70	87.90	127.70	54.30	64.00
NET INCOME (AHC) MEDIAN	33.40	34.20	39.40	43.30	43.30	47.20	49.80	64.10	77.10	122.00	42.50	46.90

Source:

Family expenditure survey.

(b) Pensioner couples
Average income (I per week. 1989 prices)
	Quintile 1	Quintile 2	Quintile 3	Quintile 4	Quintile 5	Total
Income source	1979	1989	1979	1989	1979	1989	1979	1989	1979	1989	1979	1989
Earnings^*	0.20	0.50	1.10	0.40	4.90	6.90	23.20	16.20	79.20	70.40	21.60	18.80
Benefit income	70.80	78.70	77.20	86.50	77.00	82.70	73.00	80.90	65.30	74.50	72.60	80.70
Investment income	2.30	3.70	3.10	6.60	4.80	14.10	8.90	24.20	53.60	120.20	14.50	33.70
Occupational pension	2.20	5.00	6.10	12.70	15.90	26.30	31.80	54.80	79.80	130.20	27.00	45.70
Other^*	0.20	0.30	0.30	0.40	1.40	0.40	0.70	0.60	0.90	0.70	0.70	0.50
Gross income	75.70	88.20	87.70	106.50	104.00	130.50	137.50	176.60	278.70	396.00	136.50	179.40
Deduction	5.10	9.90	4.70	10.20	6.90	14.50	15.20	22.90	66.90	89.00	19.70	29.30
NET INCOME (BHC) MEAN	70.60	78.40	83.00	96.30	97.10	115.90	122.30	153.70	211.80	307.00	116.80	150.10
NET INCOME (AHC) MEAN	58.70	65.20	69.10	81.60	83.20	105.20	107.10	145.60	190.10	295.30	101.50	138.50
NET INCOME (BHC) MEDIAN	70.80	80.20	82.20	96.20	95.30	114.50	120.60	152.80	183.10	253.30	95.60	114.50
NET INCOME (AHC) MEDIAN	58.90	68.90	68.40	81.20	81.30	105.10	106.40	145.00	164.50	242.90	82.10	105.10

Source:

Family expenditure survey.

(c) Pensioner units
Average income (£ per week, 1989 prices)
	Quintile 1	Quintile 2	Quintile 3	Quintile 4	Quintile 5	Total
Income source	1979	1989	1979	1989	1979	1989	1979	1989	1979	1989	1979	1989
Earnings^*	0.30	0.20	0.40	0.30	0.70	1.70	8.70	6.50	43.30	38.50	10.70	9.40
Benefit income	52.00	55.50	59.10	67.70	57.50	67.80	58.20	68.80	55.90	61.70	56.50	64.30
Investment income	1.90	3.10	2.30	4.60	2.50	5.50	7.00	15.60	36.50	86.80	10.00	23.10
Occupational pension	1.10	2.40	3.20	6.00	5.30	10.20	14.30	30.00	50.40	89.70	14.80	27.60
Other^*	0.30	0.20	0.20	0.30	0.40	0.30	1.20	0.50	0.70	0.80	0.60	0.40
Gross income	55.50	61.50	65.20	78.90	66.50	85.40	89.40	121.40	186.70	277.50	92.70	124.90
Deduction	4.80	8.70	4.20	8.30	4.30	9.20	8.40	15.20	40.20	59.70	12.40	20.20
NET INCOME (BHC) MEAN	50.70	52.80	61.00	70.60	62.20	76.20	81.00	106.20	146.60	217.80	80.30	104.70
NET INCOME (AHC) MEAN	43.80	43.40	48.10	51.60	51.50	64.90	69.10	98.30	128.00	206.90	68.10	93.00
NET INCOME (BHC) MEDIAN	44.50	48.10	51.80	60.50	56.70	67.30	70.50	95.10	135.10	179.90	64.00	78.70
NET INCOME (AHC) MEDIAN	36.10	38.00	39.90	44.10	44.10	52.30	56.00	85.90	117.30	171.60	53.00	68.60

Source:Family expenditure survey.

294W

Report, columns 268–70, if he will make a similar analysis for each quintile of pensioners' incomes for single pensioners, pensioner couples and all pensioner units.

§ Miss Widdecombe

The information is in the tables.

295W

(d) Growth in pensioner income 1979 to 1989
Average income change
Per cent.
	Quintile 1	Quintile 2	Quintile 3	Quintile 4	Quintile 5	Total
Income source	¹S	²C	³U	¹S	²C	³U	¹S	²C	³U	¹S	²C	³U	¹S	²C	³U	¹S	²C	³U
Earnings⁴	-81	108	-24	177	-62	-29	-37	41	135	-40	-30	-25	-13	-11	-11	-17	-13	-12
Benefit income	10	11	7	12	12	15	21	7	18	16	11	18	12	14	10	15	11	14
Investment income	54	63	68	125	117	102	35	193	117	59	173	122	145	124	138	121	133	130
Occupational pension	181	131	127	99	109	87	100	66	92	137	73	110	100	63	78	107	69	86
Other⁴	-74	31	-45	131	15	53	-1	-73	-27	-40	-21	-58	5	-22	21	-17	-34	-24
Gross income	12	17	11	19	21	21	25	25	28	28	28	36	58	42	49	35	31	35
Deduction	75	94	81	94	118	99	104	110	114	75	51	80	71	33	49	77	49	63
Net income (BHC) median	5	13	8	12	17	17	17	20	19	21	27	35	45	38	33	⁵29	⁵29	⁵30
Net income (AHC) median	2	17	5	10	19	11	9	29	19	29	36	53	58	48	46	⁵33	⁵36	⁵37

Source: Family Expenditure Survey.

¹ Single pensioners.

² Pensioner couples.

³ Pensioner units.

⁴ Indicates that sample sizes are too small to provide reliable estimates. Figures are shown only to demonstrate how totals are arrived at.

⁵ Mean.

Notes:

1. All figures before housing costs (BHC) unless otherwise stated. After Housing costs—AHC.

2. All average amounts are means except where otherwise stated.

3. Components may not sum to totals owing to rounding.

4. Pension units are defined as single people over state pension age and couples in which the husband is over state pension age.

5. Estimates of percentage growth are based on unrounded income figures and may not therefore be the same as those calculated from the rounded amounts shown in the table.

6. Estimates of growth in total net incomes by quintile are based on medians. Estimates of growth of components of income and total incomes of all pensioners are based on means.

Table 2: Investment income for pensioner units of all ages
(a) Pensioner couples
Quintile (Ql = lowest)	Percentage of units in receipt	Average amount for those in receipt (£ per week)
	1979	1989	1979	1989	Per cent, growth
Ql	56	66	4.00	4.70	18
Q2	67	55	4.60	8.40	83
Q3	68	59	7.10	15.80	123
Q4	76	71	11.80	26.10	121
Q5	90	93	59.30	124.40	110
All	71	87	20.30	38.80	91

(b) Single pensioners
Quintile (Ql = lowest)	Percentage of units in receipt	Average amount for those in receipt (£ per week)
	1979	1989	1979	1989	Per cent, growth
Ql	49	65	3.50	4.00	14
Q2	49	58	3.60	6.90	92
Q3	45	57	4.40	4.70	7
Q4	62	71	9.20	12.70	38
Q5	78	91	34.90	73.30	110
All	57	69	13.60	24.90	83

296W

(c) All pensioner units
Quintile (Ql = lowest)	Percentage of units in receipt	Average amount for those in receipt (£ per week)
	1979	1989	1979	1989	Per cent, growth
Ql	52	70	3.60	4.40	22
Q2	55	64	4.10	7.20	76
Q3	50	66	5.00	8.30	66
Q4	68	82	10.30	18.90	83
Q5	83	93	44.20	92.80	109
All	62	75	16.30	30.70	88

Table 3
Investment income for recently retired pensioner units
(a) Pensioner couples
	Percentage of units in receipt	Average amount for those in receipt £ per week
Quintile Q1 = lowest	1979	1989	1979	1989	Percent. growth
Ql	65	81	5.90	7.50	^**
Q2	^**
Q3			^**
Q4	84	91	39.90	61.70	^**
Q5			^**
All	73	87	21.60	41.50	92

297W

(b) Single pensioners
	Percentage of units in receipt	Average amount for those in receipt £ per week
Quintile Q1 = lowest	1979	1989	1979	1989	Percent. growth
Q1	47	48	12.60	31.50	^**
Q2	^**
Q3	70	75	^**
Q4	^**
Q5	^**
All	60	64	12.60	31.50	150

(c) All pensioner units
	Percentage of units in receipt	Average amount for those in receipt £ per week
Quintile Ql = lowest	1979	1989	1979	1989	Per cent growth
Ql	50	63	4.20	7.20	71
Q2	56	72
03	68	76	7.50	13.10	75
Q4	77	83	13.30	25.00	88
Q5	87	95	48.00	112.90	135
All	68	78	18.20	38.10	109

Table 4
Occupational pension for pensioner units of all ages
(a) Pensioner couples
	Percentage of units in receipt	Average amount for those in receipt £ per week
Quintile Q1 = lowest	1979	1989	1979	1989	Per cent, growth
Ql	38	48	9.10	15.70	73
Q2	59	66
Q3	77	81	21.70	32.10	48
Q4	79	89	41.70	61.20	47
Q5	74	81	113.80	160.80	41
All	65	73	43.80	62.70	43

(b) Single pensioners
	Percentage of units in receipt	Average amount for those in receipt £ per week
Quintile Ql = lowest	1979	1989	1979	1989	Percent, growth
Ql	11	21	9.50	10.00	^**
Q2	20	32	^**
Q3	25	42	15.20	^**
Q4	44	62	16.20	27.90	72
Q5	59	78	56.10	86.30	54
All	32	47	29.00	41.60	43

(c) All pensioner units
	Percentage of units in receipt	Average amount for those in receipt £ per week
Quintile Q1 = lowest	1979	1989	1979	1989	Percent, growth
Ql	20	29	6.00	9.10	52
Q2	34	43	10.30	14.60	42
Q3	38	55	15.70	20.60	31

298W

	Percentage of units in receipt	Average amount for those in receipt £ per week
Quintile Q1 = lowest	1979	1989	1979	1989	Percent, growth
Q4	60	74	26.80	41.70	56
Q5	65	81	80.90	117.00	45
All	43	56	36.70	52.10	42

Table 5
Occupational Pension for recently retired pensioner unit
(a) Pensioner couples
	Percentage of units in receipt	Average amount for those in receipt £ per week
Quintile Q1 = lowest	1979	1989	1979	1989	Percent, growth
Q1	63	71	20.80	27.70	33
Q2
Q3
Q4	76	82	89.10	114.50	29
Q5
All	68	75	51.50	65.60	27

(b) Single pensioners
	Percentage of units in receipt	Average amount for those in receipt £ per week
Quintile Q1 = lowest	1979	1989	1979	1989	Percent, growth
Q1	28	38	^*	41.40	^**
Q2
Q3	43	67
Q4
Q5
All	37	55	^*	41.40	^**

(c) All pensioners
	Percentage of units in receipt	Average amount for those in receipt £ per week
Quintile Q1 = lowest	1979	1989	1979	1989	Percent, growth
Q1	47	58	18.10	22.60	25
Q2
Q3
Q4	67	81	74.60	96.10	29
Q5
All	55	67	45.90	58.00	26

Notes to tables 2–5:

(i) A pensioner unit is defined as a single pensioner aged above state pensionable age (SPA) or a pensioner couple where the husband is aged over SPA.

(ii) A recently retired pensioner unit is defined as a single pensioner aged less than five years above SPA or a pensioner couple where the husband is aged less than five years above SPA.

(iii) ^* denotes where low sample sizes make any estimate unreliable.

(iv) ^** denotes where percentage growth estimates are inappropriate.

(v) Where single quintile estimates are not reliable, due to low numbers of sample cases, an estimate is given for a number of combined quintiles

(vi) All amounts are given at 1989 prices.

299W

(vii) Tables I and 3 are based on the separate income distributions for single pensioners, pensioner couples and all pensioner units respectively. Tables 2 and 4 are based on separate income distributions for recently retired single pensioners, pensioner couples and all pensioner units respectively.