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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.”

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