People planning to retire this year can expect to live off a record average annual income of £19,900 - a tenth (10%) more than those who retired in 2017 - research from Prudential has found.
The figure stood at its highest level since the insurer began its ‘Class of…' survey in 2008 and is the fifth consecutive year of rising retirement incomes.
According to Prudential, this year's retirees - the Class of 2018 - could expect an income 10% higher than those who gave up work in 2017, whose average expected annual retirement income was £18,100.
The Pru found expected retirement incomes had risen consistently since 2013 when they were at a low of £15,300. This year's findings saw the average annual income surpass pre-financial crisis levels to be £1,200 higher than the £18,700 expected in 2008.
Research Plus surveyed nearly 9,900 non-retired UK adults aged 45 and over on behalf of Prudential, between 29 November and 11 December 2017, including 1,000 people planning to retire in 2018.
Despite the record increase, however, Prudential said there were signs uncertainty may be hitting consumer confidence. This year's findings revealed nearly half (46%) of people planning to retire this year felt they were either not financially well prepared for retirement or were unsure about their preparations.
Just half (50%) believed their expected income would enable them to enjoy a comfortable retirement, while more than a quarter (27%) believed they did not have enough money for retirement.
Prudential retirement income expert Vince Smith-Hughes (pictured) said: "The new record high for expected retirement incomes is good news for people planning to retire this year - highlighting how saving for the future is paying off. The 10% rise from last year is even more impressive given the economic and political uncertainty savers are having to cope with.
"That uncertainty is, however, impacting the confidence of nearly half of the Class of 2018 who fear they are not financially well equipped. For many, a consultation with a professional financial adviser - both when saving into a pension and considering the income options at retirement - could be a major help."
He added: "The message remains the same for anyone looking to make their retirement as financially comfortable as possible - try to save as much as possible as early as possible in your working life."
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