Retirement incomes hit five-year low

www.moneynews.co.uk > Retirement calculator > Retirement incomes hit five-year low

Retirement incomes hit five-year low

Wed 11th Jan 2012

The expected amount that individuals heading into retirement will receive from their pension pots has fallen to a five-year low, new figures have shown.

According to data compiled by Prudential, the expected annual income figure for those retiring in 2012 stands at £15,500 - 16 per cent less than levels seen in 2008 and six per cent (the equivalent of £1,000) down on 2011.

Vince Smith-Hughes, Prudential's retirement income expert, said: "The impact of the credit crunch, banking crisis, recession, and concerns over the eurozone has been reflected in the fact that expected retirement income levels have hit a five-year-low."

He added that there are things those planning to retire this year can do to boost their pension pots, including seeking professional financial advice on annuities before taking the plunge.

The news follows data from the Department for Work and Pensions, which showed fewer Brits are putting money aside for the pensions, with just 38 per cent of workers regularly contributing towards retirement saving.

Click here for more retirement calculator news

Related News : Retirement calculator
	Many Brits 'failing to save for retirement'
	Older Brits 'must get all the benefits they are entitled to'
	Many over-60s 'can just afford the basics'
	Older Brits 'feeling more of the strain'
	Over-50s 'suffering most from inflation'
	Retirees 'to challenge work-shy youngsters'
	One-size-fits-all approach 'not right for retirement planning'
	Brits 'must reassess retirement plans'
	Homeowners advised to 'take small steps' when downsizing
	Older Brits with kids 'less likely to provide for themselves in retirement'