Pensioners battered by the rising cost of living are scraping by on an average of £6,200 a year less than they need to live comfortably, according to a study by the Prudential.
Just over two thirds (38%) are struggling to make ends meet and find their retirement income has not met their expectations.
Pensioners finding funding their retirement difficult are carrying on working, often part-time (17%); some have downsized their home (12%); equity release is popular with others (6%) while a few are selling mother assets to subsidise living costs (5%).
Nevertheless, the findings from the survey show 70% of pensioners enjoy their retirement, while one in four are keen to spend, spend, spend why they have their health.
Popular spending choices are home and garden improvements (48%) and travel (33%).
Vince Smith-Hughes, Head of Business Development at Prudential, said: “While some pensioners can draw on a range of assets and savings to boost their income and help them enjoy life in retirement, others simply get by on less than they would like.
“Recent returns on property and equity investments have been uncertain and we therefore strongly encourage people who are currently saving for retirement to seek financial advice to ensure they have an appropriate range of savings in place.
“As people are living longer and need to fund more years in retirement, it is increasingly important to seek advice from professionals and put by as much as possible, as early as possible.”
Research also found women (41%) are more likely to have financial difficulties in retirement than men (33%).
Pensioners in London (47%) and the East Midlands (46%) struggle the most with money, while those in the capital enjoy the highest income – £17,900 a year. The lowest income goes to pensioners in the south west, who get by on a frugal £13,800.
However, just over one in eight (13%) have already gifted cash or assets to their family and loved ones.
