UK pension income is currently at an almighty low, and people who are set to finish working this year face life on a pension income that has dwindled by around 16 percent over the last five years.
People retiring this year will do so on an average income, of £15,500 a year, which incorporates private, company and state pensions. This average amount has fallen by more than £1,000 since last year, and more than £3,000 from 2008.
This means that one in five pensioners will retire with an annual income below £10,000. These figures were revealed by Prudential, the pension provider.
Vince Smith-Hughes, Prudential's retirement income expert, said: "The impact of the credit crunch, banking crisis, recession, and concerns over the eurozone has been reflected in the fact that expected retirement income levels have hit a five-year-low. However, there are some practical steps that workers and imminent retirees can take to ensure a more comfortable retirement. For those who are still working, it has never been a more important time to save into a pension."
He also states that retirees “could make their retirement funds generate better incomes” by making wise investments and consulting with an independent financial planner.