Prudential Class of 2008 research, a survey of UK adults, has revealed that Brits retiring in 2008 will be drawing an average annual income of GBP18,663, around GBP5,000 less than the average income for a working adult in the UK.
The research has also found a significant gender split, with men expecting to retire on an average annual income of GBP20,790, while women expect around half that, with an average retirement income of just GBP11,291, around GBP12,000 a year less than the average income for UK adults.
The research has also revealed that less than half of those planning to retire in 2008 said they believed their pension and savings would provide sufficient income to enjoy a comfortable lifestyle, with more than one in three believing it would not, and 18% were unsure. It also showed that more than half of people retiring this year will do so from final salary schemes, with only 22% quitting work with defined contribution schemes.
Gary Shaughnessy, managing director of retail life and pensions business for Prudential, said: These figures confirm the UK’s pension crisis is far from over, and those retiring this year will have to survive on considerably less money than the average UK adult.