The income gap between pensioner couples in the top and bottom income bands has widened over the past ten years, analysis from Aegon has revealed.

The richest 20 per cent of pensioners now have an average net income of £988 per week, or £51,376 annually, representing a 15 per cent increase over the past 10 years.

However, the poorest 20 per cent have seen their incomes fall by 14 per cent, to £234 per week or £12,168 annually.

This means that the current difference between the income of the top and bottom 20 per cent of pensioner couples has risen by almost £100 from £624 to £721 per week.

Commenting on the findings, Aegon pensions director, Steven Cameron, said: “Over the last ten years, pensioner couples in the highest income distribution band have seen their average weekly income increase by 15 per cent to £988.

“A weekly income of this size would cost £1,152,250 to buy through an annuity which means this large proportion of retired couples can legitimately consider themselves ‘pensioner millionaires.

“However, whilst the top fifth of pensioner couples have seen their income rise to £988 per week, the figures show the bottom fifth have an average weekly income over £700 less at just £267 per week per couple, or £134 per individual, which is substantially under the full rate of the new state pension, currently £168.60 per week.”

The research was conducted using pensioner couples that are married or cohabiting pensioners where one or both are over state pension age.

Cameron concluded: “Many of these pensioners may have reached state pension age before 5 April 2016 and be receiving the ‘old’ state pension or have had insufficient National Insurance records to qualify for the full rate.”

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