The expected income of adults about to retire this year has grown by £1,000 in 12 months to £21,663, according to a report from equity release adviser Key.

The figure is up from £20,663 last year, and rises despite the pandemic.

“While some of this increase is likely to be due to the 3.9% state pension increase seen in 2021/22, ONS [the Office for National Statistics] has reported an increase in the number of older workers leaving the workforce so this bounce may well be due to some wealthier retirees actively choosing to stop work,” says the study, called Retirement Ready.

The average expected annual income of those retiring this year of £21,663, which is around three-quarters of median £30,472 full-time earnings in the UK.

However, not all retirees expect the same level of income.

Homeowners estimate they will retire on £23,392, over two fifths, or 43%, more than those who do not own property, who expect £16,356.

People with a partner or spouse expect to retire on £22,500 nearly a fifth, or 19%, higher than someone who is single who estimates an £18,900 annual income.

The highest retirement incomes are expected in London, at £24,857, which is around 39% more than the lowest in Wales, at £17,813.

The study also found that 22% of this year’s retirees expect to have to live on less than charity Joseph Rowntree Foundation’s minimum income standard of £12,500. This rises to 37% among those who do not own property.

The report points out that retirement incomes come from a range of sources.

Around a third of retirement income comes from the state pension, or 32%, a rise of 4% on 2020, with another 32% coming from company pension schemes. The next most likely sources are personal pensions, around 13%, and other savings and investments accounting for about 12%.

Key chief executive will Hale says: “The retirement class of 2021, like their 2020 predecessors, are planning to retire in one of the most turbulent times in recent history, due to the pandemic.

“The economic uncertainty we all face means it’s more important than ever to plan finances and be aware of all income options for the years ahead.

“While homeowners are likely to be financially better off than those who don’t own property, they do need to factor in ongoing upkeep of their homes and also the unexpected expenses that most people on fixed incomes worry about.”