The majority of retired Britons are on average receiving £6,200 less than they need for a ‘comfortable retirement’, according to new research from annuities provider Prudential.
A survey of 1,000 retired adults conducted for Prudential showed people would ideally like an income of £22,000 a year in retirement but the average income received is £15,800.
Despite this shortfall in the actual pension income many were receiving, the majority of respondents – 70 per cent – said they were enjoying their retirement.
Pensioners finding it difficult to make ends meet with their pension were also using other means to boost their income.
The research showed 17 per cent were working part-time, 12 per cent had downsized their property, six per cent had released equity in their home and five per cent had sold other assets.
Head of business development at Prudential, Vince Smith-Hughes said: “While some pensioners can draw on a range of assets and savings to boost their income and help them enjoy life in retirement, others simply get by on less than they would like.”
Smith-Hughes said Prudential strongly encourage people to seek financial advice and make sure they had appropriate savings in place, if they were still saving for retirement.
As people were living longer and needed more to fund retirement years, it was important to ‘put by as much as possible, as early as possible’.
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© Fair Investment Company Ltd