Around 1.4 million UK residents live on pensions of less than £5,000 a year after reaching retirement, state experts.
After council tax, water and electricity bills, this leaves £3,092 a year – equivalent to £59.46 each week, according to research carried out by Prudential.
The company claims that planning early for personal pension plans could mean a much higher pension income after reaching retirement.
Angus Maciver, Prudential UK director, said: "It’s worrying to think that such a large number of pensioners in this country live on £5,000 or less a year.
"It just shows the importance of planning early for retirement. The earlier you start the more time you have got to save. In addition the earlier you start the more time your investments have to grow."
Prudential also states that pension incomes are the lowest since 2004, with almost a quarter of retirees believing they do not have enough to meet financial commitments.
Furthermore, more people reliant on a pension have to make cutbacks on other spending, as 59 per cent said they had made cutbacks, which compares with 35 per cent of people at the start of 2004 and 42 per cent at the start of 2003.
Engage Mutual Assurance recently stated that many UK residents are unable to fulfil their "dreams" upon reaching retirement, due to a low pension income.
Millions face low pension incomes, experts say
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Millions face low pension incomes, experts say
Wed, 21 Jun 2006
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