Expected retirement incomes have tumbled to a five year low with almost £3,000 wiped from their value, according to research from Prudential Insurance.
The survey shows that people retiring this year expect to live on an average income of £15,500, more than £1,000 less than those who retired last year and £3,100 less than those who retired in 2008.
Due to inadequate retirement savings, one in five of those due to retire this year will be forced to survive on an annual income of less than £10,000 .
Experts have attributed the fall to the recent chaos on the stock market, shrinking annuity rates, which dropped by 8% in 2011, the impact of the credit crunch, banking crisis, recession, and concerns over the Eurozone, has been reflected in the fact that expected retirement income levels have hit a five-year-low.
There are some practical steps that workers and imminent retirees can take to ensure a more comfortable retirement. For those who are still working, it has never been a more important time to save into a pension. The longer that savings are invested in a retirement pot, the greater the opportunity they will have to grow.