Pensions  

Pension income postcode lottery revealed

Pension income postcode lottery revealed

The difference in pension income between the best and worst places in the UK is £17,500, with the Midlands harbouring six of the ten worst-performing areas, new data shows.

Financial advice firm Salisbury House Wealth analysed data from HM Revenue & Customs – which includes payments from occupational pensions, the state pension, other retirement products such as annuities, and drawdown – concluding that Leicester West has the lowest average pension income of all 650 constituencies in the UK, of just £10,400 per year.

Other areas in the Midlands such as Coventry North East (£11,600) and West Bromwich West (£12,300) have the second and fifth lowest levels, respectively.

Rank

Constituency

Average pension income

641

Stoke-on-Trent South

£12,600

642

Kingston upon Hull West and Hessle

£12,500

643

Birmingham, Erdington

£12,500

644

Leeds Central

£12,500

645

West Bromwich West

£12,300

646

Leicester East

£12,300

647

Manchester, Gorton

£11,900

648

Glasgow North East

£11,800

649

Coventry North East

£11,600

650

Leicester West

£10,400

On the other hand, London is home to seven of the top ten areas with the highest levels of average pension income - City of London and Westminster tops the list, with £34,100 per year.

Rank

Constituency

Average pension income

1

City of London and Westminster

£34,100

2

Chelsea and Fulham

£31,700

3

Westminster North

£27,300

4

Wimbledon

£26,300

5

Mole Valley

£26,100

6

Richmond Park

£25,900

7

Hampstead and Kilburn

£25,700

8

Kensington

£25,100

9

Esher and Walton

£24,700

10

Guilford

£24,200

The areas with the lowest employment incomes are Dwyfor Meirionnydd, which has an average pension income of £19,700, and Blackley and Broughton (£21,000).

Salisbury House Wealth stated that although earnings from employment was a driver of future pension income, when it comes to the amount individuals can afford to contribute to private and occupational pensions, it is not the only factor.

The firm added despite the differences pension income was relatively low across the UK overall.

According to Tim Holmes, managing director of Salisbury House Wealth, a decent level of income in retirement can be achieved through a few simple steps, wherever the location.

He said: "By starting early, paying in what you can, and doing so on a regular basis you can go a long way to improving your prospects of a comfortable retirement – which is what everyone wants.

"There is a wealth of options available to help you grow your pension pot, from Isas to self-invested personal pensions. Expert financial planning can help you make the most of the range of products out there."

maria.espadinha@ft.com

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