Retirement is bringing cash shock for UK pensioners

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

The average annual income drops by two-thirds upon retirement
The average annual income drops by two-thirds upon retirement

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.

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