Retirement has its benefits
18 Aug 2016
In the 1960s the young never had it so good, so they say, but in the 1990s and 2000s (especially the latter) it seems it’s the old who now enjoy the relative good life. Latest nowcasting data from the ONS, which provides initial estimates of household income indicators, show that the median household disposable income was £26,400 in 2015/16, which in constant price terms, is £400 higher than the pre-economic downturn level observed in 2007/08 (£26,000). However, that £400 gain has not been evenly spread across the generations as the Figure below shows. Retired households have done best since 2007/08 and in fact better than their working counterparts since the early 1990s. Non-retired households have caught up a bit since 2012/13, when the decline in real incomes bottomed out after the financial crisis, and in terms of absolute income, the typical non-retired household earns more than the typical retired household.