Financial Planning firms need to assess their retirement income advice in advance of the FCA’s impending review of the retirement income market, a compliance firm has warned.

Less than two-fifths (36%) of the average retirement income before tax is made up by pensions, according to a new report.

Only 39% of pension savers are on track for a moderate retirement income of £23,300 a year.

Annuity rates have climbed again meaning a 65-year-old with a £100,000 pension pot should be able to buy an annuity income of up to £7,144 per year, up from £7,027 two weeks ago and an increase of 20% on the same period last year.

The ideal retirement income is £22,500 per annum, according to new consumer research.

The Financial Services Compensation Scheme has warned that retirees are being tempted to put money into investment products claiming to offer high returns due to the prolonged low interest savings environment.

A new report on retirement income has revealed that 15% of people are still working past 65 with many concerned they have enough income to retire completely.