Retirement income 'drops by 7% in 2010'
Friday, 24 December 2010 12:00
The average retirement income in the UK has fallen by seven per cent this year compared with 2009, according to analysis from Prudential.
In its review of the past 12 months, the insurer said that someone stopping work in 2010 could typically expect to receive £16,509 per annum from their savings.
This is down from £17,779 in 2009 and is 11.5 per cent lower than the 2008 figure of £18,663.
On average, a man retiring this year will draw an annual income of £19,593 from their pension. Woman will typically receive £7,424 less.
Prudential noted that the gap between the figures for males and females has grown by £872 in 2010.
Furthermore, the company warned that over half (52 per cent) of people could be at risk of losing some or all of their retirement income if their partner dies.
Almost four out of ten (39 per cent) have made no arrangements to ensure they will continue to receive payments in these circumstances, while another 13 per cent do not know if they would be covered.
According to recent research from Defaqto, only 40 per cent of Britons are setting money aside in a pension and 20 per cent are saving nothing at all.
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