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Retiree situation already deteriorating
1 February 2008 12:00
This year's retirees face significant declines in their incomes once they give up work, according to new figures, with many recognising the insufficiency of their finances.
The average person retiring in 2008 will have an annual income of £18,663, 21.4 per cent below the typical Briton's earnings, Prudential's data showed, while the average female retiree will bring in only £11,291 per year.
Moreover, less than half of this year's retirees believed that their combined state and private pension provision would be enough for them to live comfortably on, whereas over a third of them did not.
Prudential's Gary Shaughnessy warned that this shows the pensions crisis is far from over and that the gap between employee and retiree incomes is only likely to increase as fewer people end their working lives with final benefit schemes.
The pensions Advisory Service's Des Hamilton recently predicted that most defined benefit schemes will vanish over the next decade, although a National Association of Pension Funds poll has shown that most providers still expect to be offering theirs in some format in five years' time.
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