Consumers ‘should plan ahead for retirement’

Financial planning is crucial if people want to avoid needing debt help after they have retired, it has been suggested.

Gary Shaughnessy, managing director of Prudential Retail Life and Pensions, warned that people retiring now will have to survive on “considerably less money” than the typical British adult.

He predicted that the situation is set to worsen, as fewer people reach retirement with the benefit of a final salary workplace pension scheme.

His comments come after Prudential found the average yearly income of people retiring this year will be £18,663, which is nearly £5,000 less than the median annual earnings for a full-time UK employee.

Mr Shaughnessy said: “It is absolutely critical that people seek professional independent financial advice when planning retirement.”

Last year, Callcredit research found that 16 per cent of those older than 55 seemed to have no debt management plan in place as they had no idea how much they owed.