Retirees now earning £20,000 per year

Ryan Bembridge

January 12, 2018

Typical retirees are now expected to earn an income of nearly £20,000 per year, research from Prudential has revealed.

Retirees in 2017 can expect an annual retirement income of £18,100, compared to £19,900 this year, the study concluded.

The estimated retirement incomes have risen since 2013, when they hit a low of £15,300.

Vince Smith-Hughes, a retirement income 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% 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. For many a consultation with a professional financial adviser, both when saving into a pension and considering the income options at retirement, could be a major help.

“But 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.”

Despite the record increase, nearly half (46%) of people planning to retire this year feel they are either not financially well prepared for retirement or are unsure about their preparations.

Meanwhile, just half (50%) believe their expected income will enable them to have a comfortable retirement.

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