Jan 22 2007
Two thirds of pensioners in the UK have cut back on their expenditure in retirement due to having insufficient income for a comfortable retirement, it has been reported.
Recently published research from Prudential found that the average annual pensioner income is £12,1251 a year, while a quarter of pensioners rely only on the basic state pension of £4,381.
The firm reports that 31 per cent of pensioners have reduced their expenditure on clothing in the past six months, while 23 per cent have cut back on heating and other bills and 16 per cent have economised on food and drink.
Ali Crossley, retirement income director at Prudential, said: "The fact that 25 per cent of the retired population do not have any form of private pension is very alarming and we strongly encourage those who have not retired to see a financial adviser and ensure they have form of savings vehicle or private provision in place."
He added that it was vital that people plan early to save for retirement, with an early start giving more time to save for a higher pension.
Recent figures from Alliance Trust reported that the elderly inflation has exceeded four per cent.
