Over-60s Income Squeezed by Dependants

FUTURE PROOF: Retiring this year? Four in 10 Britons approaching retirement risk their pension pot being eroded by their family and other dependants

Emma Wall 5 March, 2014 | 4:19PM
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Retirement does not mean the end to financial burdens, as four in 10 workers due to retire this year reveal they will have to offer financial support to dependants from their pension.

According to the latest Prudential survey those who retiring this year offer support to an average of two dependants to the tune to £3,000 a year. Considering the average pension pot is just £36,800 which at current supressed annuity rates would buy you a retirement income of just £1,340 a year this is a considerable drag on pensioners’ finances.

This year’s retirees are the victims of the sandwich generation – left to support both their parents and children in the face of high youth unemployment and rising care bills. A quarter of those surveyed said the extra burden meant they would not be able to leave any inheritance, and their own standard of living had been affected.

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About Author

Emma Wall  is former Senior International Editor for Morningstar

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