Data released by the Institute of Fiscal Studies (IFS) shows that nearly half of couples recently retired are better off in retirement than when they were working.
In fact almost half of couples questioned said they had a better income in retirement than they did working.
The study by the IFS looked at the retirement income of couples now compared to their earnings in the thirty years from 20-years-old to 50-years-old.
The findings showed that 80% of those born in the 40s had an retirement income at 65 worth around two-thirds of their average career earnings if they combined their private and state pensions.
Four in ten said were now enjoying higher incomes than their working life average earnings.
Pensioners generally by the age of 65 have grown up children who are no longer financially dependent on them, and have usually completely paid off their mortgages and no longer have to pay into a private or workplace pension which greatly frees up a large portion of money that would have been accounted for in their working lives.
In addition, housing wealth has meant that many 65-year-olds are considerably better off than they were when working, particularly those who first got onto the housing ladder in the 1970 and 1980s when houses were cheap.
The IFS report found that 92% of recently retired couples had an average surplus wealth, including property wealth, of £220,000 over and above their needs or around £7,000 a year – more than enough to enjoy a comfortable retirement.
When housing wealth was eliminated from the calculation there was still three quarters of couples who had more money than they needed to maintain their standard of living throughout retirement, with an average wealth surplus of £120,000.
The news is likely to add fuel to the fire of the argument that wealthier pensioners should not be given pensioners benefits such as the winter fuel allowance, free TV licences and bus passes and other perks.
Many of the people retiring now have been paying into the more generous final-salary pension schemes, compared with the majority of workers now paying into a defined contribution scheme. In addition the rapid rise of house prices over the past two decades has also ensure that many pensioners are now much more wealthy in their retirement than their parents.