Report on retirement income

Nebulous2

QrizB said:

Nebulous2 said:

On page 23 of the pdf, it says that 17.86% of retirees expect an income drop because they have used up all their investments or savings and 9.69% of people say they have used up their personal pension. Those were concerns raised at the introduction of pension freedoms, but the consensus is largely that the worries did not materialise. That report suggests it is still very much a live issue.

I think you're misreading that chart.

Per the text below the chart:

Almost one in six (16%) retirees saw their household income drop in the past 12 months. Among those who experienced a drop, a shocking 18% have used up their investments or cash savings, while 10% said they have used up their private pension.

So only 1-in-36 have exhausted their savings during the year, and 1-in-60 have exhausted their private pension.

That's not a huge proportion, in my opinion, in the context of a 30-year retirement.

Yes I think you're right. It's 28% of the 16% who reported a drop in income - so something like 4.4% of the total that reported either having exhausted their savings or their pension. 

The 16% that report a drop contrasts with the 51% that report concern about a drop in living standards (rather than income) over the next year. With more concerns being expressed by younger retirees than older ones.