Prudential Reveals Number of Poverty Line Pensioners on the Rise

LONDON, March 31, 2011 - Prudential has revealed that more than a third (35 per cent) of people
planning to retire in the UK this year will do so with incomes below the
poverty line.

To meet its minimum income standard the Joseph Rowntree Foundation, the
charity that funds a large, UK-wide research and development programme,
estimates that a single person in the UK needs at least GBP14,400 a year, yet
35 per cent of those retiring in 2011 will have a retirement income
(www.pru.co.uk/pensions_annuities/prudential_pensions/personal_pension/)
below this level, up from 32 per cent in 2010.

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Prudential's Class of 2011 study surveyed people intending to retire this
year and also revealed that nearly one in five (19 per cent) will retire on
an annual income of less than GBP10,000 a year.

Women planning to retire this year are even more likely to have incomes
below the poverty line. 40 per cent of women retiring in 2011 will have a
pension income of less than GBP14,400 compared with 30 per cent of men.
Prudential's research also found that a quarter (26 per cent) of women
compared with 12 per cent of men will retire this year with less than
GBP10,000 a year to live on.

Vince Smith-Hughes, Head of Business Development at Prudential said:
"Although our research shows that increasing numbers of those planning to
retire will face tough financial decisions, there are many options available
to boost retirement income.

"People approaching retirement should seek professional financial advice
as a prerequisite to maximising their income. We would recommend that you
review your finances with an adviser annually in the years immediately before
your planned retirement.

"Following the simple advice to start saving as much as you can as early
as you can should help to secure the retirement income you want and need.
Making voluntary National Insurance contributions should also help to boost
retirement income for people who have had breaks in National Insurance
payment during their working lives."

Prudential's Class of 2011 research also found that those planning to
retire in Wales and south east England this year are most likely to face
retirement poverty. 42 per cent of this year's planned retirees in Wales will
do so with an income below the poverty line with 27 per cent expecting an
income of less than GBP10,000. In the south east of England two-fifths (39
percent) of those planning retirement in 2011 will do so with incomes below
the poverty line and a quarter expects to live on less than GBP10,000 a year.

Notes to Editors:

The information contained in Prudential UK's press releases is intended
solely for journalists and should not be used by consumers to make financial
decisions.

Survey conducted by Research Plus between 6 and 14 December 2010 among
10,143 UK non-retired adults aged 45+ including 1,005 planning to retire in
2011 using an online methodology.

According to the latest research by the Joseph Rowntree Foundation the
Minimum Income Standard for the UK is currently GBP14,400 a year.

About Prudential:

"Prudential" is a trading name of The Prudential Assurance Company
Limited, which is registered in England and Wales. This name is also used by
other companies within the Prudential Group, which between them provide a
range of financial products including annuities, life assurance, bond
investment, a tax calculator and retirement plans, (
www.pru.co.uk/pensions_annuities/retiringsoon/) which include pension
schemes, (www.pru.co.uk/pensions_annuities/pension_guide/) a pension
calculator (www.pru.co.uk/pensions_annuities/our_annuities/) and
pension advice. (
www.pru.co.uk/pensions_annuities/interactive_annuity_guide/)

Prudential offers customers pensions and annuities, pensions retirement
income, insurance and investment opportunities.

    Media enquiries:

    Ben Davies
    3 Sheldon Square
    London
    W2 6PR
    +44(0)20-7150-3017
    www.pru.co.uk

Media enquiries: Ben Davies, 3 Sheldon Square, London, W2 6PR, +44(0)20-7150-3017