MSE News: Retirees face 'lowest incomes in six years'

"Pensioners expect to have a typical annual income of £15,300, about £3,400 a year less than 2008 retirees..."
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  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    Sounds like a media sound bite again, and not real world. Quoting an average is obviously open to interpretation and most times would probably refer to a mean, which is rarely representative when looking at large populations on these terms. I'd expect the more representative median income to be significantly lower, but presumably not quoted as the headline drop that is being emphasised may be less.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
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    It's also unclear as to whether this is individual income or household, whether it includes state pension or not, whether it's pre or post tax, and whether it includes any benefits or non-pension investment income.

    Other than that, the article is a gleaming gem of the finest clarity!
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • Consumerist
    Consumerist Posts: 6,310 Forumite
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    edited 9 January 2013 at 2:37PM
    From [an] <original Pru report> :-
    The results of Prudential’s annual survey, first carried out in 2008, show that expected annual retirement incomes have dropped by more than 16 per cent in the last five years. The Class of 2008 retirees looked forward to a total annual income, including private, company and State pensions, of approximately £18,600 – £3,100 a year more than those planning to retire this year.
    So this is an expectation rather than an outcome.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • NXV839
    NXV839 Posts: 66 Forumite
    Low income families should benefit from the new state pension proposals of a flat-rate system. Women in particular should fair better since typically they are more likely to work part time and act as primary caregivers to family members.

    http://www.guardian.co.uk/money/2013/jan/04/flat-rate-pension-coalition-plan
  • dtaylor84
    dtaylor84 Posts: 648 Forumite
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    From the <original Pru report> :- So this is an expectation rather than an outcome.

    That's the report released last year, but it does give more of an idea what the figures actually mean.
  • JohnRo
    JohnRo Posts: 2,887 Forumite
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    Rest assured, those retiring at the Bank of England won't be affected by any of this.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
  • Consumerist
    Consumerist Posts: 6,310 Forumite
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    edited 9 January 2013 at 2:36PM
    dtaylor84 wrote: »
    That's the report released last year, but it does give more of an idea what the figures actually mean.
    Thanks for that. Link updated.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • innovate
    innovate Posts: 16,217 Forumite
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    bigadaj wrote: »
    Sounds like a media sound bite again,

    Looks it's actually been written by the Press Association, rather than by MSE.

    Not sure what the MSE criteria are for reproducing PA materials.
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    They reproduce them.
  • jamesd
    jamesd Posts: 26,103 Forumite
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    "Research Plus conducted an independent online survey on behalf of Prudential between 2nd and 12th November 2012, interviewing 8,676 UK non retired adults aged 45+, including 1,007 who intended to retire in 2013."

    So this is a poll about people's expectations, not actual numbers about what their incomes actually will be. And naturally enough, we can expect that people seeing the world economy they will be pessimistic, in part because the value of their investments might be lower than it was last year or back in 2008.
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