People retiring in 2008 will draw an average annual income about £5,000 less than the average income of a worker, according to research by Prudential.
The research shows people retiring this year will have an income of £18,663 while men expect to retire on an average annual income of £20,790. Women expect an income of just £11,291.
A total of 46% of those planning to retire in 2008 believe their pension and savings would provide sufficient income to enjoy a comfortable lifestyle, while 36% disagree and 18% do not know.
Gary Shaughnessy, managing director of retail life and pensions at Prudential, says: “It is absolutely critical that people seek professional independent financial advice when planning retirement, and the fact that just 24% of those we polled had done so is worrying.”
A total of 52% retiring this year will do so from final salary schemes, with only 22% retiring with defined contribution schemes.
The research also shows the average age of a man retiring in 2008 stands at 60 years old while women plan to retire at an average age of 58.
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