Pensioners will have to rely more heavily on income from personal pensions as occupational schemes are declining in value, MetLife warns.
Analysis by the financial services provider suggests the average pensioner couple’s income from private pensions is just £7,696, more than £8,000 below the ideal of two-thirds final salary.
It says the shortfall means pensioners suffer a significant “overnight” step-down in their standard of living when they retire.
MetLife points out figures, from the Annual Survey of Hours and Earnings 2006 from the Office of National Statistics, show the average salary per worker in the UK is £24,301.
It says, ideally, a pensioner couple would have a combination of occupational and personal pensions delivering two-thirds of this, or £16,201.
But pensioner couples receive just £7,696 from their private pensions, giving rise to a significant pension gap of £8,505, it says.
MetLife adds the existence of a pension gap supports research it carried out earlier this year, which suggested only 32% of people aged 54-65 believe they will have enough income in retirement.
Nearly one in five (18%) expected a monthly shortfall, of which nearly 130,000 expected to be over £1,000 a month. Half of those in this age group were unsure whether they would face a shortfall.
Rosy Atal, head of marketing, MetLife Europe, says: "Far too many pensioners see an overnight drop in their standard of living the day they retire.
“If pensioners are to enjoy a reasonable standard of living then it is vital that they save more in their working years.
“Our analysis also shows that pensioner couples draw just £20 a week from personal pensions, which is an incredibly low figure.
“Pensioners will have to rely much more on their personal pension savings going forward as occupational schemes decline in value.”
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