Is it getting harder to manage your income in retirement?

The average weekly income for pensioners was £455 in 2025, according to new figures from the Department for Work and Pensions (DWP).

While incomes have remained broadly stable in recent years, the figures highlight the importance of the state pension and how many retirees rely on several sources of income.

Here Which? explain what the latest figures show and what it means for your retirement income.  

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What’s happening to pensioners’ incomes?

The DWP's annual Pensioners' Income report looks at how much weekly income pensioners receive and where it comes from, based on a survey of 6,300 pensioner households and administrative data.

Pensioners’ incomes have roughly stayed the same over the past three years: according to the latest figures, the average weekly income for pensioners (after housing costs) was £455 in financial year 2025, compared to £443 in 2022.

For pensioner couples (where at least one person was of state pension age) the average weekly income in 2025 was £650. This was almost double that of single pensioners, who had an average weekly income of £332.

The importance of the state pension

The DWP’s figures highlight how vital the state pension is. Almost all pensioners (98%) receive it, and benefits overall make up a large share of income — 58% for single pensioners and 40% for couples.

The state pension is a particularly important source of income for those in low-income households.

For the lowest-income pensioners, benefits make up the majority of their income — 79% for couples and 88% for single pensioners. By contrast, for the highest-income groups, this falls to 17% and 29%.

The state pension age will start rising to 67 from April, with further rises currently under review – but the effects of these changes won't be felt equally: people in low-income households, single pensioners and single women are all more likely to rely on benefits income.

• Find out more: state pension age rising – when will you qualify?

What are the other sources of pensioner income?

While the state pension is a crucial income source for many, it is unlikely to provide enough to live on on its own: from April 2026, the full state pension will be worth £12,548 per year, but Pensions UK estimates that a single person needs £13,400 for a ‘minimum’ standard of retirement.

Many retirees rely on a workplace or personal pension, as well as savings, investments and earnings to supplement the state pension.

This chart shows the percentage of gross mean income from different sources in the financial year 2025 for single pensioners and couples:

Are retirement incomes becoming more complicated?

The DWP’s figures suggest retirement income is changing.

For example, the average amount pensioners’ receive from their workplace pension has fallen by over 10% - from £369 to £328 per week -  since 2021-22.

Pete Cowell, head of annuities at Standard Life said this reflects the move from generous defined benefit (DB) schemes, to defined contribution (DC) schemes. He said: 'Today’s figures underline how far we have moved from the era of defined benefit schemes, which once provided guaranteed, salary‑linked income for life.'

'In its place, more retirees are relying on a combination of workplace and personal pensions, savings, drawdown and, for some, part‑time work. That marks a fundamental shift in the retirement landscape. Where DB schemes offered certainty, today’s DC system places far greater responsibility on individuals to piece together a sustainable income.'

According to DWP figures, there's been a slight increase in the proportion of pensioners receiving earnings from employment: 16% of pensioners received earnings in 2025, compared with 14% in 2022. In some cases, this includes couples where one partner is below state pension age. 

There’s also been a statistically significant increase in the amount of people receiving income from investments: 62% of pensioners now receive income from investments compared with 58% in 2022. The average amount they receive per week has increased from £84 to £105 pounds.

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4 tips for managing your income in retirement

If you’re relying on a mix of income in retirement, these steps can help you make the most of what you have.

1. Seek guidance if you’re unsure

If you’ve got a defined contribution pension, you’ll need to make important decisions about how to access and manage your savings.

A regulated financial adviser can help you understand your options, and how to maximise your pension savings. You’ll normally be charged an initial fee and an ongoing annual charge based on the value of your pot.

There is free support available if you can’t afford financial advice. Anyone aged 50 or over can get free general guidance from Pension Wise, a government service run by Money Helper.

• Find out more: how to get retirement and pension advice

2. Make sure you claim benefits you’re entitled to

Income-related benefits can provide an important boost to your retirement income - and you may not realise that you’re entitled to support.

Applications for pension credit fell by 36% between February 2025 and February 2026, according to recent figures from the DWP. Pension credit unlocks a whole host of other benefits, including help with housing costs, bills and healthcare.

You can Turn2Us's benefits calculator to find out if you’re eligible for support that you’re not currently receiving. 

• Find out more: pension credit claims fall - are you missing extra help?

3. Top up your state pension

If you don’t receive the full amount of state pension, you may be able to top it up - even if you’ve already reached state pension age.

How much state pension you receive is based on your National Insurance contributions (NICs). You need at least 10 years' worth of NICs to receive any state pension, and 35 to claim the full amount.

If you reached state pension age on or after 6 April 2016, you can boost your state pension by buying voluntary NICs to fill any gaps in your NI record in the past six years. 

And if you looked after a grandchild or family member under the age of 12 while their parent worked, you might be able to claim backdated childcare NI credits. 

In order to qualify you must have provided the childcare before you reached state pension age and the child’s parent must be claiming child benefit. Visit the government website to find out more. 

• Find out more: should I top up my state pension?

4. Make use of discounts and deals

Once you turn 60, there are a range of discounts and deals that can help you manage the cost of retirement, from free travel to discounted days out and sports tickets.

For example, if you receive pension credit (or another relevant benefit) you can book £1 tickets to any of the RHS gardens. Entrance normally costs between £13.25 and £19.80.

And people over 60 can visit Culzean Castle and Country Park in South Ayrshire, Scotland - the highest-rated historic attraction in Which?’s most recent survey - for £16.50, saving 25% on a standard adult ticket.

• Find out more: best spring deals for over-60s