Older workers planning to retire this year are expecting an income larger than the salary of graduates in their first full-time jobs, figures show for the first time.

Pensioner incomes are soaring to record highs with people on the verge of retirement anticipating annual pension income of nearly £20,000 in 2018, according to a study by pension firm Prudential.

This is up by 30 per cent from £15,300 in 2013 to £19,900 this year, the survey of 1,000 retirees showed.

Meanwhile young graduates starting out in the workforce are experiencing stagnating incomes which are for the first time being eclipsed by retirees' booming pensions.

Currently an average 23-year old university graduate can expect to earn an annual salary of £19,076, down by £16 from £19,092 in 2013, ONS data shows.