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One in five 2010 retirees have no pension fund

One in five 2010 retirees have no pension fund

Category: Pensions

Updated: 27/01/2010
First Published: 27/01/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Almost one in five people planning on retiring in 2010 will do so with no personal pension savings, according to research.

Eighteen per cent of people preparing for retirement this year will do so relying strictly on the State Pension and their savings, research from Prudential has revealed.

However, many of those planning to retire have little idea how much their provision from the state amounts to.

Nearly a third (31 per cent) of people surveyed either did not know how much the basic State Pension pays or actually over estimated the amount they think they will be entitled to.

The basic State Pension actually pays £95.25 per week, the equivalent of just over £4,950 a year, highlighting the need for additional savings to be built up.

"Those individuals relying on their state pension to fund their retirement are in for a rude awakening, particularly as many seem to have unrealistic expectations as to the amount they will receive," Richard Eagling, editor of Investment Life & Pensions Moneyfacts, told Moneyfacts.co.uk.

"These latest findings demonstrate the need for the Government to raise awareness of what the State Pension pays and for individuals to take greater control of their own retirement destiny."

Generally, research found that the State Pension will made around a third of retirement income, with income from company schemes, other savings and investments and personal pensions making up the majority of other revenue streams.

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