Pensioner income dips to £13,200

AVERAGE household earnings for pensioners has plunged from £14,200 to £13,200, according to new research.

The Prudential Retirement Index also reveals 2.8m of the UK's 9.6m pensioners, nearly one in three, are planning to return to work to make ends meet, compared with 2m last year.

Also, more than half of people admitted they were not in total control of their finances and 18% are not planning to leave an inheritance, although 10% said they were spending less so they could leave more for their family.

'There is certainly a growing number of geri-actives who are living for today and spending their money,' said Angus Maciver, director of research at Prudential. 'But a large number are genuinely struggling to keep their own heads above water, let alone worry about the next generation.'

Despite the worsening situation, most pensioners remain complacent. Only 6% are concerned about money, according to a study from insurer Prudential. The top worry was about health and well-being, with 51% saying this was their main concern, while 17% named crime as their greatest fear. Only 9% worried about the financial security of their children and grandchildren and just 8% were concerned they would not be able to enjoy the retirement they wanted.

More promisingly, the study, which involved interviews with 490 people, also shows only 3.5m of pensioners are cutting back spending to make ends meet compared with 5m last year. Prudential said its research did not extend to the reasons for the changing trends.