One in six to retire without a pension - Pensions - News - Moneyfacts

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One in six to retire without a pension

One in six to retire without a pension

Category: Pensions

Updated: 05/10/2012
First Published: 04/04/2012

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 It is now over 6 months old so the content may be out of date.

Millions of Britons could be heading for a retirement shortfall as they are planning on relying solely on their State Pensions.

The worrying figures have been revealed by Prudential research which found that one in six (16%) people planning to retire this year will depend entirely on their state provision.

And it's women who are guiltier than men when it comes to failing to save properly for their retirement.

One in five women (20%) planning to retire this year will do so with only a State Pension, compared to just 8% of men.

Those who do only have a State Pension for their retirement could be in for a shock, as a quarter of people either overestimate how much it will pay by more than £500 a year or simply do not know how much it is worth.

"While the State Pension is a safety net for pensioners in the UK , it should only ever be regarded as part of an overall retirement plan," said Vince Smith-Hughes, retirement income expert at Prudential.

"For far too many people, the State Pension has become the default income option in retirement. Even those who have some private provision depend so heavily on the State that it makes up a third of their retirement income.

"Although State Pension levels will rise to £107.45 for single people per week on Friday, this will still only provide relatively low levels of income to people in retirement."

The average person planning to retire this year will look to the State for 34% of their income, with State Pension payments set to rise to £107.45 a week for single people from this Friday (6 April 2012).

Company pensions (35%) are the second highest source of income and the remaining 30% comes from a mixture of savings, investments, personal pension savings, part time work and money from family members.

What Next?

Learn about your pension options

For help or a pension quote call TQ Invest:
0800 294 7203

Looking for a pension to help you save for your retirement? TQ Invest can help.

Find an old pension – contact the Pensions Tracing Service on 0845 600 2537


Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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