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A third of people heading for pension poverty

A third of people heading for pension poverty

Category: Pensions

Updated: 13/05/2011
First Published: 30/03/2011

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 It is now over 6 months old so the content may be out of date.

a third of people planning to retire in the UK this year will do so with incomes below the poverty line.

Research by Prudential has found that nearly one in five people (19%) retiring this year will have an annual income of less than £10,000 a year.

This falls way below the £14,400 a year that the Joseph Rowntree Foundation estimates that a single person in the UK needs to maintain a minimum standard of living.

Yet 35% of people retiring in 2011 will retire with an income below this level, up from 32% in 2010.

Women planning to retire this year are even more likely to have incomes below the poverty line. Forty per cent of women retiring in 2011 will have a pension income of less than £14,400 compared with 30% of men.

Prudential's research also found that a quarter (26%) of women compared with 12% of men will retire this year with less than £10,000 a year to live on.

Vince Smith-Hughes, Head of Business Development at Prudential, said.
"Although our research shows that increasing numbers of those planning to retire will face tough financial decisions, there are many options available to boost retirement income.

"People approaching retirement should seek professional financial advice as a prerequisite to maximising their income.

"We would recommend that you review your finances with an adviser annually in the years immediately before your planned retirement."

If you're approaching retirement, our annuity best buy charts are an ideal starting point when searching for the best annuity rates.

An online annuity planner service, such as that offered by Premier Retirement Services, should also be considered.

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