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Is £140 a week enough to live on?

Is £140 a week enough to live on?

Category: Retirement

Updated: 16/05/2011
First Published: 16/05/2011

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 It is now over 6 months old so the content may be out of date.

People that fail to make any financial plans for their retirement face having to get by on £140 a week, but many think that will be enough.

The Government recently proposed a new single-tier state pension worth £140 a week, winning praise for its simplicity compared to the current system of means testing.

And almost one in five people (18%) think the figure would be enough for them to get by each week, figures from Standard Life show.

Almost two in three people (63%) said that £140 a week would not be enough to get by with, while 18% admitted they did not know how they would fare on such a weekly sum.

Unsurprisingly, the age group with the highest proportion of people that think living on £140 a week is possible is the 18-24 year olds, with almost three in ten saying the figure would be enough.

At the other end of the scale, just 13% of 45-54 year olds thought £140 a week would be sufficient to live comfortably.

John Lawson, head of pensions policy at Standard Life said that the flat rate pension makes it clear and easy for people to understand how much they will receive

"However, people clearly recognise that £140 a week will not likely be enough to live on in retirement," he warned.

"We need to get more people to save more. This means encouraging people to take ownership of their financial futures by providing access to the right level of information, financial advice and products at the appropriate times."

If you don't think that £140 a week is enough for you in retirement, you should begin saving into a company pension as early as possible.

In the next five years, a new scheme will be phased into the UK meaning all employees not offered a workplace pension are placed in a Government scheme.

There will be a minimum contribution of 8% shared between employer and employee, although pensions experts recommend saving a percentage of your salary that is half of your age.

If you're approaching retirement, our annuity best buy charts are an ideal starting point when searching for the best annuity rates.

An online annuity planner service, such as that offered by Premier Retirement Services should also be considered.

Find the best annuity for you - Compare annuities

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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