12:39 19 January 2013
The Prudential has carried out research which has found expected retirement income amounts are in decline.
It’s study ‘Class of’, which looked at people reaching retirement, states that retirees in 2013 expect £200 less from their average incomes, compared with the expectations of retirees in 2012.
The latest news on pensions relates to David Cameron suggesting the current system needs simplifying. Government plans are expected to consider having a flat-rate pension.
This single tier plan, which would be expected to start April 2017, would mean the current pension of £107.45 per week, that is added to by the second state pension to make £142.70, would become £144 each week.
Prudential retirement expert Vince Smith Hughes has said previously: “The continuing trend is even more concerning, when you consider that rising inflation is eroding pensioners' spending power in real-terms.
"Wherever possible, people entering retirement should consult a financial adviser or retirement specialist, who will be able to talk them through all of the retirement income options available to them.
“It can be tempting to go for whatever product offers the highest initial income, but this might not be the best value in the long-run as it could leave dependents at risk, or fail to protect you against rising living costs.
"Those who are still working should think about saving as much as possible as early as possible, to give themselves the best chance of building up a decent pension pot to help to ensure a comfortable retirement."
The Prudential is an insurance company who provide various financial services including pensions, investment planning, and savings.
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