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Retirees living on less than uni graduates

Retirees living on less than uni graduates

Category: Retirement

Updated: 01/10/2013
First Published: 01/10/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

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.

"Struggling"

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.

What can you do?

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.

What Next?

Compare annuities with our online annuity planner

Learn more about auto-enrolment

Maximise your savings with the right account

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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