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Pru survey shows average pensioner&#39s income is £13.7k

Britain&#39s 10 million pensioners have a total annual income of £142.88bn, averaging £13,765, according to new research from Prudential.

But only 3 per cent have £40,000 a year or more and one in three pensioners survive on annual income of £10,000 or less in the survey of 1,200 retired people carried out last December.

Retired people in Wales have the highest average annual income at £15,386 while people in the North-east fare worst on £11,460.

Ten per cent admitted to living on less income to ensure they leave an inheritance but only 13 per cent have taken action to minimise any inheritance tax that their family might pay.

The overwhelming majority of people experienced a drop in income when they stopped work, with the average monthly fall in spending power being £347, and 8 per cent of pensioners admitted to losing sleep over money matters.

Seven per cent had sold all or some interest in their home to address their retirement finance issues while 15 per cent started part-time work and 1 per cent considered resorting to crime.

UK and Europe marketing director Roger Ramsden says: “Many people are shocked by how much their annual income drops when they retire. People need to take much greater control over their financial planing and because of this we have recently launched the Plan from the Pru. This is a free guide to the likely financial planning issues that people need to address and why, from starting work through to retirement.”


Standard says Govt figures wrong over lifetime limit

The number of people who will be hit by the £1.4m lifetime limit could be three times the figure stated in the Pensions Green Paper, warns Standard Life.It says the Green Paper only refers to the 5,000 individuals with personal pensions of over £1.4m but does not mention executive pension plans over the proposed limit, […]

A consumer&#39s view

Collapsing stockmarkets, insolvent life companies, war in Iraq – just when you thought it couldn&#39t get any worse, the Government decides to control profit margins on virtually all equity-based financial products.What? Yes – that is what the implementation of the Sandler review means in effect. Last week, the Treasury outlined its proposals to extend stakeholder-type […]

Teather & Greenwood – T&G Aim VCT

Wednesday, 12 February 2003 Aim: Growth by investing in Aim quoted and unquoted companies and fixed interest investments Minimum investment: Lump sum £2,000 Opening/closing date: February 5, 2003/April 5, 2003 for 2002/2003 tax year, April 30, 2003 for 2003/2004 tax year Charges: Initial 5.5%, annual up to 3.5% Commission: Initial 2.5% Tel: 020 7426 3204

Treasury rejects IPPR call to axe equity Isas

A call by influential thinktank the IPPR for the Government to scrap equity-based Isas has been met with incredulity by the investment industry.The IPPR says equity Isas have missed the Government&#39s target audience and that the £600m which the tax relief costs should be used elsewhere.It says the income profile of Isa savers in 2001 […]


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