Pensioners struggle on the breadline, says Prudential
Published On 22 January 2007
A stark forewarning of the pension crisis facing Britain came today with the pension firm Prudential revealing that 4.5 million pensioners living on less than £10,000 a year.The current annual income of a UK pensioner is just £12,151, with the survey suggesting some Britons will struggle in their retirement.
Responding to the research conducted by Prudential as part of its bi-annual Retirement Index, one in four pensioners said they would need an extra £4,206 a year in order to enjoy their retirement.
To make up this figure, 14 per cent of pensioners undertake some form of paid work while ten per cent have borrowed money from either a bank or from family and friends.
Prudential's retirement income director Ali Crossley called the latest statistics "alarming" and reiterated the need for sound personal planning for the future.
"Planning early for retirement is paramount," he said.
"For a pensioner to have an average UK salary, which is around £24,000 a year, a person needs to build up a personal savings or company pension pot of around £360,000, or £500,000 if you want to 'inflation-proof' it.
"It's a lot of money, though achievable if you plan for retirement early, as the earlier you start the more time you have got to save."
The Prudential's findings follow on from the Pensions Commissions report, released late last year, which sought to address the "significant problems" facing the UK pension system as a result of up to 12 million people in Britain not saving sufficiently for their future.
