Prudential Reveals Results of Class of 2011 StudyBy Prudential, PRNE
Sunday, January 23, 2011
LONDON, January 24, 2011 - Prudential has revealed the results of its Class of 2011 study, which
investigates how much pension money this year's retirees will have to live
The average person retiring this year expects to have an estimated total
annual income of GBP16,559 including any private pensions (
www.pru.co.uk/pensions_annuities/prudential_pensions/) and State
Pension, according to figures from Prudential's Class of 2011 survey. One in
five (19 per cent) of 2011's new pensioners expect to live on less than
GBP10,000 a year.
The Class of 2011 is marginally better off than those who retired in 2010
when the average estimated income for those planning to retire was GBP16,509.
By comparison average estimated retirement income in 2009 was GBP17,779 and
GBP18,663 in 2008. The figures also show that the average age of those
expecting to retire in 2011 is 60, while 19 per cent of this year's expected
retirees will do so below the age of 55.
Prudential welcomes the fact that expected incomes have stabilised after
two years of falls but is urging savers to take increased responsibility for
retirement planning by starting to save as early as possible and increasing
the amounts they save into pensions year on year.
Results of the survey suggest that in light of the current economic
climate just two in every five people (39 per cent) believe they have saved
enough for a comfortable retirement.
Nearly half (45 per cent) are convinced they have not saved enough while
another 16 per cent do not know whether their savings will be sufficient, the
study shows. Men are more optimistic than women with 48 per cent of males
believing they have saved enough compared with 30 per cent of females.
Vince Smith-Hughes of Prudential said: "The fact that expected incomes
for those retiring in 2011 have stabilised after two years of decline is good
"The Class of 2011 survey and previous studies conducted since 2007 by
Prudential underline the message that the best option is to save more and to
start saving earlier. Seeking early advice from a financial adviser should be
a prerequisite to ensuring you achieve the level of pension income you want
The Prudential study shows people retiring in Yorkshire and Humberside
and the North West in 2011 are the most optimistic about their savings - 45
per cent of those in Yorkshire and Humberside believe they have saved enough
with their pension plan (
www.pru.co.uk/pensions_annuities/prudential_pensions/) while 44 per
cent in the North West are confident about having a comfortable retirement.
However, just 20 per cent of people retiring in Wales in 2011 are
confident about a comfortable retirement and only 28 per cent of Londoners
believe they have saved enough.
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. Full consumer product information can be found at
Survey conducted by Research Plus between 5 and 10 December 2010 among
10,143 UK non-retired adults aged 45+ including 1,005 planning to retire in
2011 using an online methodology.
"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 (
www.pru.co.uk/pensions_annuities/our_annuities/), life assurance, bond
funds, a tax calculator and retirement plans.
Prudential offers customers pensions and annuities, pensions retirement
income, insurance and investment opportunities.
PR Contact: Darragh Leeson Prudential UK press office 3 Sheldon Square London W2 6PR +44(0)20-7150-2600
PR Contact: Darragh Leeson, Prudential UK press office, 3 Sheldon Square, London, W2 6PR, +44(0)20-7150-2600
Tags: January 24, London, Prudential, United Kingdom