Average retirement incomes have hit a new record high of £19,900 for people planning to stop work this year, according to Prudential’s Class of… research.

This year’s retirees – the Class of 2018 – expect an income 10% higher than those who gave up work in 2017, whose average expected annual retirement income was £18,100.

Despite the record high for incomes, nearly half (46%) of people planning to retire this year feel they are either not financially well prepared for retirement, or are unsure about their preparations.

Just half of those planning to retire this year believe their expected income will enable them to have comfortable retirement. Over a quarter (27 per cent) of those planning to retire this year believe they do not have enough money for retirement.

Prudential retirement income expert Vince Smith-Hughes said: “The new record high for expected retirement incomes is good news for people planning to retire this year highlighting how saving for the future is paying off. The 10 per cent rise from last year is even more impressive given the economic and political uncertainty that savers are having to cope with.

“That uncertainty is however impacting the confidence of nearly half of the Class of 2018 who fear they aren’t financially well equipped. For many a consultation with a professional financial adviser, both when saving into a pension and considering the income options at retirement, could be a major help.

“But the message remains the same for anyone looking to make their retirement as financially comfortable as possible - try to save as much as possible as early as possible in your working life.”

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