Analysis by Royal London of data from HM Revenue & Customs (HMRC) has unveiled “shocking disparities” in regional pension incomes. The findings, which explored pension incomes in 2015-16 according to local authorities, found that of the ten areas with the highest mean pension, four were London boroughs with the remaining six being in the south east of England.
The Survey of Personal Incomes shows the average income for London-based pensioners stood at around £18,400 per year, which was underpinned by boroughs such as the City of London and Westminster, where pension incomes were at £37,900 and £29,500 respectively. In comparison, the lowest ten local authorities included Southampton and Hull, where annual pensions were recorded at £13,100 and £12,900. The lowest recorded area was Stoke in the West Midlands where, on average, pensioners received £12,300 per annum.
Personal finance specialist at Royal London, Helen Morrissey, noted that the findings show that the disparity in pension incomes is more complex than just a simple divide between north and south. She highlighted that:
“While all of the top ten local authorities are in London and the South East, three of the lowest income authorities are also in London and the South East…It is clear that pension incomes across the UK are highly variable, with in some cases very prosperous pensioners living only a few miles down the road from those who are struggling.”