Number of pensioner millionaires grows

More than 1 million UK pensioner households have total wealth of more than £1 million, research by Prudential has found.

The analysis, based on official figures for 2010-2012, reveals that the number of over-65 millionaires increased 69% compared to 2006-2008 when the number stood at around 636,000.

This means that 11% of pensioner households now have total wealth of more than £1 million.

The research shows that the rising number of pensioner millionaires is being driven by pension assets, savings and investments, and property:

  • the value of private pension assets increased from £60,000 in 2006-2008, to £82,000 in 2010-2012
  • the number of retirees with a private pension increased from 73% in 2006-2008 to 76% in 2010-2012 
  • 19% of pensioner households now have savings and investments worth more than £100,000, a 15% rise from 2006-2008
  • the average property value for retired couples is £210,000, compared to £200,000 in 2006-2008. 

Prudential's research also finds that 12% of over-65 households have assets worth less than £40,000 and 1 in 8 have net savings and investments worth less than £500.

Vince Smith-Hughes, retirement expert at Prudential, said:

"These results challenge a few commonly-held perceptions. For example, it is perhaps surprising that the proportion of pensioner wealth accounted for by pension assets and savings and investments has grown far quicker than the relative value of property assets over the last few years.

"The figures underline the importance of people saving as much as possible as early as possible in their working lives, to enable them to secure a comfortable income retirement."