Wales

Older people with no private income

Key points

  • Around 80,000 pensioners have no income other than state benefits.  This is around a fifth of single pensioners and a tenth of pensioner couples.
  • More than half of employees on below-average incomes are not contributing to a non-state pension (although some may belong to a non-contributory pension scheme).
  • The proportion of employees not contributing to a non-state pension is around a third for all ages from 30 to 60.  Most employees aged 24 or less are not contributing to a non-state pension.

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Graph 1: Over time

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Graph 2: Not contributing by income

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Graph 3: Not contributing by age

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Definitions and data sources

The first graph shows the number of pensioners with no income other than the state retirement pension and state benefits.  Note that the figures exclude all those with any other income even if very small.

The data source for the first graph is Households Below Average Income, based on the Family Resources Survey (FRS).

The second and third graphs both show the proportion of currently employed working-age adults not contributing to a non-state pension.  In the second graph, the data is shown separately for each income quintile.  In the third graph, the data is shown separately by age group.  To improve its statistical reliability, the data is the average for the latest three years.

Note that 'not contributing to a pension' is not the same as 'not having a pension' because a) some people will belong to a non-contributory pension scheme and b) some people will have a pension which they happen not to have contributed to over the latest year. 

The data source for the second and third graphs is FRS.  The income quintiles are defined in terms of disposable household income after deducting housing costs with all data equivalised (adjusted) to account for differences in household size and composition.  Note that, although the statistics are for Welsh households only, the allocations to income quintile are those for the total UK population income distribution.

Overall adequacy of the indicator: high.  The FRS is a well-established annual government survey, designed to be representative of the population of as a whole.

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External links

See the DWP sites on Pension Credit and Winter Fuel Payments.

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