According to research for Prudential, although pensioners were seen to have an average yearly income of just £15,800, they estimate they would need £22,000 to live comfortably.
In order to lessen their financial woes, some pensioners continue to work part time, while 12 per cent have downsized their property, six per cent used equity release schemes and five per cent have sold other assets.
Nevertheless, 70 per cent of retirees maintain that they are enjoying their retirement, with almost half investing money on home and garden improvements and 33 per cent spending pension money on holidays and travel.
This comes after Dianne Bown-Wilson, chief executive of In My Prime, said that those nearing the pension age should make provisions for "health, wealth and happiness".
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