People retiring this year expect to have an annual retirement income of £15,500, 16 per cent lower than those who retired in 2008.

The figures come from Prudential, an IFP sponsor, which conducted a survey of almost 10,000 people aged 45+, including 1,000 people who would be retiring in 2012.

The survey has been running since 2008 when the annual retirement income was £18,600.

One in five people retiring this year expect to have less than £10,000 per year and 37 per cent say they have failed to save enough for a comfortable retirement.

However, 18 per cent of people retiring this year say they are unsure what level of income they will need for a comfortable retirement.

Those in London had the highest annual retirement income at almost £18,000 while retirees in Yorkshire and Humberside had an annual retirement income of only £12,800, the lowest in the UK.

Vince Smith-Hughes, Prudential’s retirement income expert, said: “The current economic climate has created the perfect storm for people in the run up to retirement. The impact of the credit crunch, banking crisis, recession and concerns over the Eurozone, has been reflected in the fact that expected retirement income levels have hit a five-year-low.”

The results echo details from First Direct which revealed 23 per cent of people aged 45-54 have no savings at all and six per cent have less than £250.