Expected UK retirement income hits a 6-year high

Expected retirement incomes among 2015 retirees have hit a 6-year high, according to research by Prudential.

The survey of more than 1,000 people planning to retire this year found that the average expected income is £17,000 a year. This is an 8% increase from the 2014 average of £15,800.

Despite optimism increasing in 2015, expected incomes are still significantly lower than during the start of the financial crisis:

• those retiring in 2008 expected to have £18,700 a year – £1,700 more than people retiring in 2015
• individuals retiring in 2009 expected to have £17,800 a year – an £800 difference compared to 2015 retirees.

Prudential also discovered regional variations among expected retirement incomes:

• expected incomes increased by 27% in the North East between 2014 and 2015
• the South West (19%), the West Midlands (18%) and London (17%) also saw large increases
• expected incomes in Scotland fell 7%.

Vince Smith-Hughes, retirement expert at Prudential, said:

“It is encouraging that as economic confidence returns, our research continues to show a welcome upward trend in expected retirement incomes since the low point 2 years ago.

“This is only the third time since we started researching retiree attitudes back in 2008 that we have income expectations rise.”