Research done by the Prudential shows that pensioners have a annual £6,000 shortfall in their income.
Pensioners who took part in the survey said that they needed an average income of £22,000 per year, but their actual income was just £15,800.
The research found that pensioners are using various ways of bridging the gap between their required level of income and what they are actually getting. 17% of pensioners were still earning an income through part time work and 5% have sold some of their assets to raise much needed funds.
Some pensioners have used their property to help meet the shortfall with 6% releasing equity from their home, twice as many have downsized to a smaller property.
The research also found that more women were finding it harder to live on their retirement income than men.
Price rises
The gap between the level of income pensioners require and their actual level of income could partly be down to recent rises in inflation.
Many pensioners rely on fixed incomes which have been badly affected by recent price rises which affect the elderly more than younger generations.
Insufficient contributions to pensions or alternative investments during their working life could be another reason for the shortfall many pensioners have to cope with.
Reaction
Vince Smith-Hughes, the Prudential’s head of business development, said: “While some pensioners can draw on a range of assets and savings to boost their income and help them enjoy life in retirement, others simply get by on less than they would like.”
He added, “Recent returns on property and equity investments have been uncertain and we therefore strongly encourage people who are currently saving for retirement to seek financial advice to ensure they have an appropriate range of savings in place.”
