The average income in retirement

According to new research from Prudential, people planning to retire in 2017 expect to receive an average annual income of £18,100, but how realistic is it to achieve this figure?

Those relying exclusively on the State Pension to fund their lifestyle in retirement will find themselves some way short of expectations - the maximum level of state pension is rising to £159.55 per week from April (£8,297 per annum) - assuming that they receive the full entitlement, so most will need to make additional provisions to plug the gap.

Anyone who is still working should seriously consider the retirement lifestyle that they wish to enjoy. The more money is saved during your working lifetime the more you can look forward to in retirement, but as we are generally living longer, the money has to go further.

Make sure you obtain a State Pension forecast so that you’ll have an idea as to how much the state will provide you with and if there is a shortfall between what you’ll receive and what you’ll need it will provide an indication of how much more you will need to save. Revisit our blog on how to obtain a State Pension forecast here.

Those who are employed and aged between 16 and 74 may be able to save into a workplace pension scheme through automatic enrolment and those who do so will benefit from contributions by their employer.

If you aren’t employed or aren’t eligible for auto enrolment then it is wise to review your retirement plans and provisions with a financial adviser, who can make recommendations based on your own specific circumstances.