We provide a critique of the methods that have been used to derive measures of income risk and draw attention to the importance of demographic factors as a source of income risk. We also propose new measures of the contribution to total income risk of demographic and labour market factors....

Most UK surveys, including those used each year to derive the official UK income distribution statistics ("Households Below Average Income"), provide measures of current household income rather than annual household income, which is the measure used in most other countries. Using British...