Pensioners under pressure as incomes drop

16/03/2009

Pensioners are radically scaling back their retirement plans due to the recession, it has been revealed.

A poll from Prudential shows that people retiring this year expect an annual income £884 below those who retired in 2008.

The typical yearly pay is estimated at £17,779 for 2009 - with one in ten predicting that they would earn less than £10,000.

Keith Haggart at Prudential said: "The global economic recession is relentless and indiscriminate in its impact and it was only a matter of time before we began to see British pensioners bear the brunt."

Kevin Still, EuroDebt director, added: “Our experience is that over-60 clients have reduced net income with just over £1,000 per month being the norm, which is a considerable reduction in the average net income across the board.

"The average unsecured debt for our over-60s is above average at around £25,000 and many of the homeowners still have an outstanding mortgage to support. It quite common for these clients to have to supplement pensions and benefits with part-time work.”

The Prudential poll also revealed that almost two-thirds of retirees are concerned that they won't have enough money to live on as a pensioner.

Just 47 per cent said that they were "financially well-prepared" for retirement.

Tags; Income Worries and Debt, Retirement Money Problems,

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