Expected retirement incomes among 2015 retirees have hit a 6-year high, according to research by Prudential.
The survey of more than 1,000 people planning to retire this year found that the average expected income is £17,000 a year. This is an 8% increase from the 2014 average of £15,800.
Despite optimism increasing in 2015, expected incomes are still significantly lower than during the start of the financial crisis:
- those retiring in 2008 expected to have £18,700 a year - £1,700 more than people retiring in 2015.
- individuals retiring in 2009 expected to have £17,800 a year - an £800 difference compared to 2015 retirees.
Prudential also discovered regional variations among expected retirement incomes:
- expected comes increased by 27% in the North East between 2014 and 2015.
- The South West (19%), the West Midlands (18%) and London (17%) also saw large increases.
- expected incomes in Scotland fell 7%.
Vince Smith-Hughes, Retirement Expect at Prudential said:
"It is encouraging that as economic confidence returns, our research continues to show a welcome upward trend in expected retirement incomes since the low point two years ago. This is only the third time since we started researching retiree attitudes back in 2008 that we have seen income expectations rise".
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