The average retirement income in 2014 was £15,800 but unlike earned incomes which have remained steady or increased slightly in the past few years average retirement incomes have been declining. For example it is 11 per cent down on 2009’s £17,779 and 15% down on 2008’s £18,663. This worrying trend is likely to continue as occupation pension schemes close, annuity rates go lower and the squeeze continues on disposable incomes, which means that most people have less money to save for their future. The state pension will account for 35 per cent of average retirement income for those planning to retire in 2014, but one in seven people will retire without a pension, and women are nearly three times more likely than men to be entirely reliant upon the state pension, because they made no provisions of their own. (Statistics source: Prudential)
How my heart sings 