Retirement income report

Commenting on a report out today from Prudential which claims that Welsh workers retiring this year will have the lowest average incomes recorded in six years, our Head of Policy and Public Affairs Graeme Francis says:

"Age Cymru has concerns about the amount of money people are retiring on.

"The UK Government must implement plans to introduce a simpler, more generous state pension - a fairer, more consistent state pension that encourages people to save when they are in work.

"The main problem with the current state pension is that people don't know what to expect from it - most people assume the sum they will receive is higher than it is so they think it will be adequate to replace their working income when they retire and, for most people, it's not the case.

"Another issue that is compounding this situation is that older people are spending a higher proportion of their income on food and fuel, and the cost of these essentials has risen much faster than inflation.

"Older people also don't have the same scope to increase their income as other people, which also puts them at risk of poverty."