UK adults retiring in 2013 expect average retirement incomes of £15,300 per year, £200 less than in 2012 and 18 per cent lower than what they would have received in 2008 according to Prudential.

Research conducted between 2-12 November 2012, interviewing 8,676 non-retired adults aged 45 and over, including 1,007 intending to retire in 2013, showed that average retirement incomes are now £3,400 lower than in 2008 and incomes have fallen in four of the past five years.

In addition, retirement incomes have fallen as a result of higher inflation levels that have in turn resulted in prices rising by 14.7 per cent.

Prudential retirement expert Vince Smith Hughes said: “The continuing trend is even more concerning, when you consider that rising inflation is eroding pensioners’ spending power in real terms.

“Wherever possible, people entering retirement should consult a financial adviser or retirement specialist, who will be able to talk them through all of the retirement income options available to them. It can be tempting to go for whatever product offers the highest initial income, but this might not be the best value in the long-run as it could leave dependents at risk, or fail to protect you against rising living costs.”

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