Pensioners surviving on less than £5k a yr

Some 1.4 million pensioners (14 per cent) have less than £5,000 a year in retirement income, according to new research.

A retirement index from investment providers Prudential UK revealed that after council tax, water and electricity bills, pensioners are left with just £3,092 a year from £5,000 – equivalent to £59.46 each week or £8.49 a day.

And the full basic state pension at age 65 is less than £5,000 at just £4,381 a year, highlighting the need for workers hoping for a comfortable future to start saving now.

More than 38 per cent of older people get by on £10,000 or less and over half of the British pensioner population lives on £15,000 or less each year.

The low level of income has forced many pensioners (59 per cent) to make cutbacks in their everyday spending.

Almost a quarter said they have had to cut back on leisure activities, eating out, holidays at home and abroad and treats for themselves.

"It's worrying to think that such a large number of pensioners in this country live on £5,000 or less a year. How many of us could truly say that we could manage on what works out to be just £8.49 a day?" said Angus Maciver from Prudential UK.

"What's more, this struggle isn't just for a couple of years. Retirement is now roughly 25 years long for the average person, but who wants to spend what's nearly a third of their life struggling by on less than a 'tenner' a day?"

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