The difference in pension income between the best and worst places in the UK is £17,500, with the Midlands harbouring six of the ten worst-performing areas, new data shows.
Financial advice firm Salisbury House Wealth analysed data from HM Revenue & Customs – which includes payments from occupational pensions, the state pension, other retirement products such as annuities, and drawdown – concluding that Leicester West has the lowest average pension income of all 650 constituencies in the UK, of just £10,400 per year.
Other areas in the Midlands such as Coventry North East (£11,600) and West Bromwich West (£12,300) have the second and fifth lowest levels, respectively.
Average pension income
Kingston upon Hull West and Hessle
West Bromwich West
Glasgow North East
Coventry North East
On the other hand, London is home to seven of the top ten areas with the highest levels of average pension income - City of London and Westminster tops the list, with £34,100 per year.
Average pension income
City of London and Westminster
Chelsea and Fulham
Hampstead and Kilburn
Esher and Walton
The areas with the lowest employment incomes are Dwyfor Meirionnydd, which has an average pension income of £19,700, and Blackley and Broughton (£21,000).
Salisbury House Wealth stated that although earnings from employment was a driver of future pension income, when it comes to the amount individuals can afford to contribute to private and occupational pensions, it is not the only factor.
The firm added despite the differences pension income was relatively low across the UK overall.
According to Tim Holmes, managing director of Salisbury House Wealth, a decent level of income in retirement can be achieved through a few simple steps, wherever the location.
He said: "By starting early, paying in what you can, and doing so on a regular basis you can go a long way to improving your prospects of a comfortable retirement – which is what everyone wants.
"There is a wealth of options available to help you grow your pension pot, from Isas to self-invested personal pensions. Expert financial planning can help you make the most of the range of products out there."
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