Retirement income for pensioners in 2018 has seen a significant rise this year, according to the latest research by Prudential.

Prudential says people planning to retire this year are expecting to have an average annual income of £19,900, the highest level since the survey began in 2008 and after five consecutive years of rising incomes.

The company conducts yearly research into the financial plans and aspirations of people planning to retire in the year ahead.

This year’s retirees – the Class of 2018 – expect an income 10% higher than those who gave up work in 2017, whose average expected annual retirement income was £18,100, the company’s latest research showed.
Figures also revealed that expected incomes have now passed their pre-financial crisis levels and are £1,200 higher than the £18,700 expected in 2008.

Vince Smith-Hughes, a retirement income expert at Prudential, said: “The new record high for expected retirement incomes is good news for people planning to retire this year highlighting how saving for the future is paying off.

“The 10 per cent rise from last year is even more impressive given the economic and political uncertainty that savers are having to cope with."