UK pensioners are £6,000 shy of a comfortable retirement

Money Worries

A new study conducted by Prudential has revealed that UK pensioners are entering retirement with less money than they require to live comfortably.

When quizzed by Prudential, pensioners told Prudential that they believed they needed a minimum yearly income of £22,000 to enjoy a stress free retirement. However, it transpires that many pensioners are retiring on an average of around £15,800, around £6,000 less than they need.

To cope with the low income many pensioners are having to supplement their income through a variety of methods. Around 17 percent stated that they continued working into retirement, 12 percent moved into cheaper accommodation, six percent relinquished equity from their property and 5 percent sold personal assets.

Vince Smith-Hughes, Prudential head of business development, said: “While some pensioners can draw on a range of assets and savings to boost their income and help them enjoy life in retirement, others simply get by on less than they would like. Recent returns on property and equity investments have been uncertain and we therefore strongly encourage people who are currently saving for retirement to seek financial advice to ensure they have an appropriate range of savings in place.”

Mr Smith-Hughes added that: “As people are living longer and need to fund more years in retirement, it is increasingly important to seek advice from professionals and put by as much as possible, as early as possible.”

These findings again highlight the importance of seeking sound financial advice. It’s never too early to begin planning for your retirement, check the Contact an IFA page to find out how you can get in touch with a recommended financial adviser.