Pensioners are £6,200 short of a comfortable retirement incomeNew research highlights struggles for the retired

01 July 2011

Pensioners struggling to live on their retirement income

Pensioners in the UK don't feel that they have enough income for a comfortable retirement

British pensioners have a retirement income almost 30% lower than what they feel they need to be comfortable in later life, new research from insurance giant Prudential has found.

Pensioners say they need £22,000 a year to have a comfortable retirement, but in fact, the average income they receive from their pension is just £15,800, a £6,200 shortfall in their savings. 

In fact, nearly 40% of people that Prudential surveyed said they found living on their retirement income harder than they expected.

Looking for other income in retirement

Prudential’s research provides an illuminating insight into the habits of Britain’s pensioners in the current economic environment. Prudential found that:

  • 17% of pensioners have found part-time work to supplement their retirement income;
  • 12% have downsized their property;
  • 6% have released equity from their homes;
  •  and 5% have sold assets to raise funds.

This corroborates recent research from insurance company Scottish Widows, which found that average contribution rates in defined contribution (DC) pension schemes for those aged 25 to 65 were around 9% - that's 3% less than what’s needed to live comfortably in retirement (with 30% of your salary).

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Which? Money - Live pensions Q&A

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