Prudential annually conducts research into the financial plans and aspirations of people looking to retire in the year ahead.
This year’s retirees – the Class of 2018 – expect an income 10% higher than those who gave up work in 2017.
The research further shows that expected retirement incomes have risen consistently since 2013 when they hit a low of £15,300. The 2018 figure also passes the pre-financial crisis level of £18,700 that was expected in 2008.
Vince Smith-Hughes, retirement income expert at Prudential, said: “The new record high for expected retirement incomes is good news for people planning to retire this year highlighting how saving for the future is paying off.”
Half still uncertain
Despite the increase, the Class of 2018 research shows that 46% of people planning to retire this year feel they are not financially well prepared for retirement or are unsure about their preparations.
“That uncertainty is, however, impacting the confidence of nearly half of the Class of 2018 who fear they aren’t financially well equipped.
“For many, a consultation with a professional financial adviser, both when saving into a pension and considering the income options at retirement, could be a major help,” Smith-Hughes said.