The average annual income drops by two-thirds upon retirement and the average person retires with an annual income almost a quarter less than the minimum wage, according to a major financial provider.
In its annual State of Retirement report, LV also highlights that a fifth of women have no pensions savings within five years of retirement and will rely solely on the state pension.
A total of 30% of women aged over 50 expect to work longer than previously anticipated, compared to a quarter of men (23%).
LV also found that 12% of retirees have outstanding credit card debt, 7% have an outstanding mortgage and 5% are overdrawn. The report reveals that while the average annual salary for the over-60s is £25,480, the average annual pension income, including state pension, is just a third of that at £8,774.