Pension News Start Saving If You Want To Retire Says Prudential
09 February 2005
Research published by Prudential shows that an estimated 1.6 million pensioners have had to return to work to boost a low retirement income, and offers stern advice to those planning for their retirement.
The survey by the insurance firm shows that some 14.4 per cent of retired people have returned to work – and 45 per cent of those stated the extra income as the main motivation.
With an average income for retired households now standing at £12,400 – less than half the national average wage – pensioners are also having to cut back on spending to make ends meet.
Almost two in ten have had to stop buying treats for themselves, and almost the same number have given up holidays. More than 12 per cent said they had to cut back on heating and electricity – and four per cent have actually had to sell their house.
According to Prudential, these findings confirm that most younger people have little idea about their future retirement income.
On average, workers expect an annual retirement income of £18,000 and think they can achieve this sum with savings of £115,000 – when in fact they would need £180,000, or 60 per cent more than that, to secure an income at that level.
“Despite dire warnings most people still adopt an ostrich approach and hope for a miracle to fund their retirement,” Angus Maciver, a director at Prudential, told the Guardian.