According to HomeWise Retirement Properties, the retirement housing and finance specialist, a woman retiring at 65 today and living on the average pensioner income will need around £437,886 for the rest of her life.  The corresponding figure for an average man retiring at this age is around £366,912, nearly £71,000 less because of a shorter life expectancy. This equates to an average of £402,399 per pensioner.

A woman retiring today at 65 can expect to reach their 89th birthday, and the average man retiring at this age should live until they are 86.

Mark Neal, Managing Director, HomeWise Retirement Properties said: “Medical advances mean that on average, we can all expect to live longer and enjoy over 20 years of retirement life.  However, this can put a growing strain on our finances, which means that many find it difficult to make ends meet.  Around two million pensioners live below the poverty line and we expect this number to grow.

“This financial shortfall helps to explain why many more retired people are deciding to release equity from their homes to support their standard of living.  Indeed, we estimate that retired homeowners have over one trillion pounds of equity in their homes.”

In terms of where the average pensioner’s income comes from, HomeWise Retirement Properties’s analysis of industry data reveals that around 61% comes from benefits, 23% from occupational pensions and 7% from investment income. Just 6% will come from earnings.

HomeWise Retirement Properties offers a free Guide to Retirement Living, which can be obtained by calling 0800 043 33 66. You can find out more about the company by visiting thier website.