Older people’s wealth has jumped over the past 40 years, with a sevenfold increase in private pension income, according to the Office for National Statistics (ONS).
Last year someone with a private pension was found to have an average weekly disposable weekly income of £534.75.
The average weekly salary for workers in Britain currently sits at a typical £473 before tax.
The figures show people now at retirement age have reaped the benefits of gold-plated pensions and the triple-lock on state pensions, according to experts.
In 1977 just one in five homes had the equivalent of £10,000 of disposable income a year, but this has now increased to more than nine in 10, ONS figures showed.
Half of the increase in the income of retired households between over the past four decades can be attributed to increased private pension income, according to the ONS.
David Newman, head of pensions at Close Brothers Asset Management, said: “Pensioners have never had it so good.
“Gold-plated final salary pensions have been instrumental in boosting incomes over the past forty years, while the income provided by the State Pension has doubled over the period, with the triple lock maintaining growth more recently.
“But as life expectancies rise, the financial burden for the State becomes unsustainable, and the most lucrative defined benefit pension schemes become a thing of the past, the question is: what next for younger generations?”
Steven Cameron, pensions director at Aegon added: “Pensioners in the UK have never been better off financially than they are today.
“In the last 40 years, the average pensioner has catapulted out of the lowest income bands, and has even begun to close the gap on average incomes received by the working population.”
However, despite the increase in disposable income, inequality has grown in recent years between those who have a private pension and those who do not.
Someone without a private pension has a disposable income of £331.33 a week – £200 less than those with.
Last year, retired households with a private pension had disposable income that is around 1.6 times higher than those who do not, the ONS data showed.
Experts said it showed that savers must take responsibility to build a decent, sustainable retirement pot.
Tom Selby, senior analyst at AJ Bell, said: “These latest official statistics are a stark reminder of the impact failing to save for retirement can have.
“Previously the state might have filled at least some of this retirement income void but in a world of austerity cuts this is increasingly not the case.
“The net result is the gap between the pension ‘haves’ and ‘have nots’ is on the rise.
“Government reforms, primarily automatic enrolment, should go some way to improving retirement outcomes in the UK but savers need to realise that the responsibility is firmly on their shoulders.”