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Pensioners are £6,200 short of a comfortable retirement income

New research highlights struggles for the retired

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

Are you baffled by state pensions or Sipps? Are you worried about being able save enough for your retirement? Whatever your pension questions, Which? experts will be on hand to answer them during our live Q&A on Friday 1 July. 

Sign up now to take part in this exclusive event for members at www.which.co.uk/pensionsqanda, or log on at 12.30pm on the day to get involved.

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