Retirement incomes hit highest level since financial crash
6 February, 2018
A new study has found that retirement income levels in the UK have hit their highest peak since the financial crisis.
A new study by insurance and pension provider, Prudential, has found that those planning to retire in 2018 are predicted to live on an average annual income of £19,900, compared to an income of just £15,300 in 2013.
This means that someone retiring today could be looking at a retirement income that is 10 per cent higher than someone who left work 12 months before.
This is the first time that retirement income has exceeded the £18,700 recorded in 2008, prior to the financial crisis.
During its research, the firm found that while incomes were increasing, nearly half of people retiring (46 per cent) did not feel financially prepared for their retirement and more than a quarter (27 per cent) said that they did not believe that they had enough money to last through their retirement.
Vince Smith-Hughes, an expert at Prudential, said: “The new record high for expected retirement incomes is good news for people planning to retire this year highlighting how saving for the future is paying off.
“The 10 per cent rise from last year is even more impressive given the economic and political uncertainty that savers are having to cope with.
“That uncertainty is, however, impacting the confidence of nearly half of the Class of 2018 who fear they aren’t financially well equipped… The message remains the same for anyone looking to make their retirement as financially comfortable as possible – try to save as much as possible as early as possible in your working life.”