Research from the Prudential has revealed that people who plan to retire in 2017 can look forward to an average annual income of £18,100. This figure has risen consistently since 2013 and represents a £400 increase on last year.
However, there are significant regional variations, with those in Eastern England expecting incomes of £23,500 a year, while retirees in London expect an income of just £14,000 a year. One possible reason for the low figure in London is the lower than average proportion of retirees who are enrolled in final salary pension schemes.
The research also found that 45 per cent of people retiring this year feel that they are financially unprepared to stop work. This figure may be set to increase in future years with the decline in final salary pension schemes.
Kirsty Anderson of Prudential said: “The continued growth in retirement incomes is something that I’m sure will be welcomed by everyone planning to retire this year.
“But it’s striking that the expected income of people who retired at the height of the financial crisis was higher than for those who are giving up work in 2017 and still playing catch up 10 years later.”
She added: “It is remarkable how a consistently high proportion of retirees have remained uncertain about their financial preparations.”