PEOPLE retiring this year will need a pension that generates at least £130,000 over the rest of their life if they are to have a comfortable standard of living, research showed yesterday.
The sum needed will be even higher for people retiring over the coming 15 years as a result of increased life expectancy and a fall in the proportion of pensioner income made up of state benefits, according to Prudential.
The group said the average pensioner has an income of about £12,500 a year at present. Nearly half of this is made up of state benefits, leaving individuals needing to find about £6,250 a year.
But it said increased life expectancy meant the average man retiring at 65 this year could expect to live until he is 82, meaning he would need a pension that provided him with a total of £106,250 during the rest of his life.
The situation is even worse for women, with the average woman who retires at 60 likely to live until she is 85, meaning her pension will have to generate at least £156,250.
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