You are here: Home - Retirement - Retirement planning - News -

Retirement incomes rise to their highest level in a decade

Written by:
Retirement incomes have hit their highest level since the financial crisis after five years of rising income, according to the latest research by Prudential.

People planning to retire this year are expecting to live on an average annual income of £19,900, compared to just £15,300 in 2013. This is 10% higher than those who gave up work in 2017.

Prudential’s annual study is now in its eleventh year and showed that expected incomes have passed their pre-financial crisis levels – £1,200 higher than the £18,700 expected in 2008.

However, in spite of this record increase, almost half (46%) of people feel they aren’t financially well prepared for retirement or are unsure about their preparations. That said, half believe their expected income will enable them to have comfortable retirement, but 27% believe they do not have enough money for retirement.

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…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.”

Jeanette Makings, head of financial education at Close Brothers said it was good news that retirement incomes are on the rise, but the number of retirees still feeling financially unprepared is a concern: “With choppy economic waters ahead and inflation rising, it is essential that people make the right choices to ensure financial security in their retirement.

“Many people simply don’t understand which financial products they should be using at different points of their savings journey, but those on the brink of retirement are most vulnerable. It’s here that employers can play a vital role, helping to ensure that their employees have a good understanding of their own financial needs and know where to go for advice.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Can investors continue to profit from global risk assets?

There were extraordinary gains seen in stock markets last year, but investors are now questioning whether this growth can be...