Despite working hard all their lives, research by Skipton Financial Services has revealed that a British retiree's annual income is less than that earned by university graduates in their first job.
In fact, on average, a retiree has an income of just £15,776.27 – almost £6,000 less than the average 21-year-old graduate.
The figures show that those entering their golden years are struggling to make ends meet on an income they would previously have earned 25 years ago, as the cost of living continues to rise.
Twenty six percent find it hard to manage their outgoings whilst 33% spend most days worrying about money, and a third find it hard to make it to the end of the month.
Even more worryingly, the survey showed that one in six retirees rely solely on their state pension, resulting in a maximum annual income of just £7,560.80 per year.
The key to having a financially solvent retirement is to start planning as soon as possible.
Saving into a private or occupational pension should be a high priority, and the implementation of auto-enrolment is a chance for workers to get their nest egg started early.
Compare annuities with our online annuity planner
Learn more about auto-enrolment
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