Pensioners have seen their household income rise on average by 83 per cent in the past 20 years.

The average weekly income for a pensioner is now £389 compared to £212 in 1987, according to figures published by Lloyds TSB.

In the same period, average earnings in the economy as a whole grew by 34 per cent.

Lloyds TSB believes the rise is mainly due to the income growth from private pensions, which has risen by 131 per cent since 1987, compared to state pension incomes which have risen by 43 per cent in the same period.

The figures also show that almost 60 per cent of a pensioner’s household income is now sourced from private pensions compared to 42 per cent in 1987.

Commenting on the findings, Prabal Gupta, propositions, investments and marketing director of UK Private Banking, said: “Almost 90 per cent of pensioners have some form of private income that supplements their state pension.

“However, only 40 per cent of pensioners receive more than half of their income from these private sources.”

Mr Gupta stressed it is important that people start planning for retirement early in order “to achieve the desired quality of life when no longer working”.

“It is also important to regularly review pension provision to make sure that it’s still meeting your needs,” he said.

© Fair Investment Company Ltd