Prudential Reveals Number Of Poverty Line Pensioners On The Rise
Released on: April 01, 2011, 7:29 am
Prudential has revealed that more than a third (35 per cent)
of people planning to retire in the UK this year will do so with
incomes below the poverty line.
To meet its minimum income standard the Joseph Rowntree Foundation, the charity that
funds a large, UK-wide research and development programme, estimates that a single
person in the UK needs at least £14,400 a year, yet 35 per cent of those retiring in
2011 will have a retirement income below this level, up from 32 per cent in 2010.
Prudential's Class of 2011 study surveyed people intending to retire this year and
also revealed that nearly one in five (19 per cent) will retire on an annual income
of less than £10,000 a year.
Women planning to retire this year are even more likely to have incomes below the
poverty line. 40 per cent of women retiring in 2011 will have a pension income of
less than £14,400 compared with 30 per cent of men. Prudential's research also
found that a quarter (26 per cent) of women compared with 12 per cent of men will
retire this year with less than £10,000 a year to live on.
Vince Smith-Hughes, Head of Business Development at Prudential said: "Although our
research shows that increasing numbers of those planning to retire will face tough
financial decisions, there are many options available to boost retirement income.
"People approaching retirement should seek professional financial advice as a
prerequisite to maximising their income. We would recommend that you review your
finances with an adviser annually in the years immediately before your planned
"Following the simple advice to start saving as much as you can as early as you can
should help to secure the retirement income you want and need. Making voluntary
National Insurance contributions should also help to boost retirement income for
people who have had breaks in National Insurance payment during their working
Prudential's Class of 2011 research also found that those planning to retire in
Wales and south east England this year are most likely to face retirement poverty.
42 per cent of this year's planned retirees in Wales will do so with an income
below the poverty line with 27 per cent expecting an income of less than £10,000. In
the south east of England two-fifths (39 percent) of those planning retirement in
2011 will do so with incomes below the poverty line and a quarter expects to live on
less than £10,000 a year.
- ENDS -
Notes to Editors:
The information contained in Prudential UK's press releases is intended solely for
journalists and should not be used by consumers to make financial decisions.
Survey conducted by Research Plus between 6 and 14 December 2010 among 10,143 UK
non-retired adults aged 45+ including 1,005 planning to retire in 2011 using an
According to the latest research by the Joseph Rowntree Foundation the Minimum
Income Standard for the UK is currently £14,400 a year.
"Prudential" is a trading name of The Prudential Assurance Company Limited, which
is registered in England and Wales. This name is also used by other companies within
the Prudential Group, which between them provide a range of financial products
including annuities, life assurance, bond investment, a tax calculator and retirement plans, which
include pension schemes, a pension calculator and pension advice.
Prudential offers customers pensions and annuities, pensions retirement income,
insurance and investment opportunities.
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020 7150 3017
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