This year’s retirees to have highest income since 2008

This year’s retirees will have the highest income since 2008. That was according to a report from Prudential, which showed retirement income on average is nearly at the all-time peak of £18,700 a year. It will fall £600 short of that total, researchers stated.The figure is a fourth consecutive annual increase.Each year Prudential conducts research into the financial plans and aspirations of people planning to retire in the year ahead. This year’s retirees – the Class of 2017 – expect an income £400 a year higher than those who gave up work in 2016, whose average expected annual retirement income was £17,700.Expected retirement incomes have now risen consistently since 2013 when they hit a low of £15,300.However, the Prudential study, now in its tenth year, showed that expected incomes were still struggling to recover to their pre-financial crisis levels, remaining below the 2008 peak of £18,700.Prudential’s annual research has tracked retirement trends over a decade that has seen some of the biggest changes to pensions in generations, and there are signs that these ongoing changes may be impacting retirees’ confidence about the future.For example, the research found that nearly half (45 per cent) of people planning to retire in 2017 feel they are either not financially well prepared for retirement or are unsure about their preparations.Kirsty Anderson, a retirement income expert at Prudential, said: “It is striking that the expected income of people who retired at the height of the financial crisis was higher than for those who are giving up work in 2017 and still playing catch up 10 years later.“After a decade of unprecedented changes to the rules around pensions, we are also seeing a degree of uncertainty from retirees about whether the amount they’ve saved will leave them financially prepared for the years ahead.“For many people, the value of a consultation with a professional financial adviser, both when saving into a pension and when considering the income options at retirement, should not be underestimated.”

This year’s retirees to have highest income since 2008

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