People on pension incomes have received minimal increases in real standards of living over the last decade, according to analysis of ONS data by later life lender, more2life.

It states that pensioners have received a 1% p.a. increase (accounting for inflation) in average weekly pension income between 2013 and 2022.

ONS data shows between 2013 and 2022, average weekly pension income grew by just £29, from £320 to £349. Pension incomes peaked at an average of £376 in 2021, before falling £27 in 2022 – the first decrease recorded since 2017.

More2life says the average is expected to have fallen again last year, after another year of economic turbulence and rising living costs, creating financial challenges for elderly people on fixed retirement incomes.

However, average house prices jumped by 67% (not accounting for inflation) between 2013 and 2022.

Ben Waugh, managing director at more2life, said: “Our analysis shows that while pensioners have received very little in ways of income growth over the last decade, the value of their homes have accrued substantially. On the one hand, rising house prices can be an encumbrance for borrowers, with mortgage repayments often rising in tandem.

“However, it does mean homeowners will have a larger sum of equity tied up in their property, should they wish to unlock it – funds that can either be used to augment stagnant pension pots, help grapple with higher mortgage repayments, or even be put towards financing home improvements or a family holiday.”