A recent study has found that retirement income levels in the UK have hit their highest peak since the financial crisis.
A new study by insurance and pension provider, Prudential, has found that those planning to retire in 2018 are predicted to live on an average annual income of £19,900, compared to an income of just £15,300 in 2013.
This means that someone retiring today could be looking at a retirement income that is 10 per cent higher than someone who left work 12 months before.
This is the first time that retirement income has exceeded the £18,700 recorded in 2008, prior to the financial crisis.
During its research, the firm found that while incomes were increasing, nearly half of people retiring (46 per cent) did not feel financially prepared for their retirement and more than a quarter (27 per cent) said that they did not believe that they had enough money to last through their retirement.
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 per cent rise from last year is even more impressive given the economic and political uncertainty that savers have faced.
The message remains the same for anyone looking to make their retirement financially comfortable – try to save as much as possible as early as you can during your working life.
At Moore Thompson we are able to offer auto enrolment and reenrolment services for businesses, whilst our sister company, MT Financial Management is able to assist company directors, partners and other individuals with pensions and all aspects of financial planning.
To find out how we can help you or your clients, please contact us.