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Maximising your income levels in retirement

Why having a target in mind clearly makes a difference to fund this stage of your life

A report has highlighted the positive impact planning and professional financial advice can have on income levels in our retirement.The first Retirement Income Uncovered report from Old Mutual Wealth found that retirees who hadn’t set themselves an income target to aim for in retirement had an average income of £17,500 per year. However, those who saw a financial adviser at least once have an average income in retirement of £20,800.

ADVICE MATTERS

In addition, receiving regular professional financial advice from an adviser doubles the likelihood that a person will have a target, and those who had a target and saw an adviser have an average income of £26,000 a year, a 49% increase compared to those who did neither.

The report looked into the level and source of retirement income for people already retired from full-time work, plus those over 50 approaching this crucial part of their financial lives.This provided a concise picture of current and changing sources of retirement income, changing attitudes to work in retirement, and also levels of satisfaction and understanding of the different sources of retirement income.

RETIREMENT REALITY

  • We expect retirement to last for 21 years
  • 41% of retirees receive less than £15,000 per year
  • There is a £7,000 gap between men’s and women’s average income in retirement

PLANNING PAYS

  • Those who had a target income in mind before they retired have an additional £157,500 income over the course of an average retirement
  • Retirees who used a financial adviser are more than twice as likely to have a target income in retirement – with an average income of £26,000
  • One in four approaching retirement has a target income, compared to one in five current retirees

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    Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.Tax treatment is based on individual circumstances and may be subject to change in the future. Although endeavours have been made to provide accurate and timely information, Lloyd & Co cannot guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough review of their particular situation.We cannot accept responsibility for any loss as a result of acts or omissions.