'Pensioners to have £15 more than they need per week in 2020'

Pensioners will have £15 more in 2020 than they need every week to afford a decent standard of living, according to a report assessing the impact of the summer Budget. Retirees will have £259 available to spend weekly - £24 more than they do today - the Joseph Rowntree Foundation said.In its research published today, the organisation stated that pensioners would have 106 per cent of what they need in 2020, judging by its own criteria for a Minimum Income Standard.This is compared to £4 more (102%) in 2010 and £9 less (96%) today.The foundation said: “Those whose income comes wholly or mainly from earnings living standards are forecast to rise. This also applies to pensioners, much of whose income from the state is set to rise in line with earnings.“Families with two parents in full-time work, workers without children and pensioners will typically become better off over the next five years due to changes to pay and benefits announced in the summer Budget.”{desktop}{/desktop}{mobile}{/mobile}The report stated: “By 2020, pensioner benefits will be sufficient to bring incomes above the minimum needed, helped by their link to earnings growth.“The projections presented here show that the 2010s are likely to have seen big changes in living standards for many low-income households. Most clear-cut is the substantial fall for those out of work, with families with children projected typically to have only half that they need at the end of the decade compared with two-thirds at the start. Pensioners and low-paid working households without children will make the clearest gains.”The organisation said pensioners, who started the decade with about enough to live on (if receiving the income guaranteed by the means-tested Pension Credit), will be in a similar situation in 2020, reversing a modest decline in the past five years.The recent decline occurred despite the fact that the Pension Credit rose roughly in line with the Consumer Prices Index during this period, it said.

'Pensioners to have £15 more than they need per week in 2020'

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