Income for new retirees hits five-year low
Pension pots for people about to retire are at their lowest levels for five years, according to research from Prudential.
The expected income for new pensioners has dropped by £3,100 since 2008, to £15,500, and this includes money received from state, company and private pensions.
A fifth of retirees will have to live on less than £10,000 each year and 37% have not saved enough to retire on a comfortable income.
Geographically, there is a lot of disparity and those in London have the highest predicted pension incomes of £17,900, while those in Yorkshire and Humberside have the lowest at £12,800.
"The current economic climate has created the perfect storm for people in the run up to retirement.
The impact of the credit crunch, banking crisis, recession and concerns over the eurozone has been reflected in the fact that expected retirement income levels have hit a five-year low," explains Vince Smith-Hughes, spokesperson for Prudential.
"It is concerning that expected retirement incomes are going down, while pensioner expenditure is going up," he adds.
The Prudential research was conducted by surveying 1,003 people who were due to retire this year and 9,614 adults aged over 45.