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One in seven set to retire without a pension

One in seven set to retire without a pension

Category: Retirement

Updated: 29/05/2013
First Published: 22/05/2013

MONEYFACTS ARCHIVE
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At least one in seven people due to retire this year will do so without the funding of a private pension, new research by Prudential has shown.

Highlighting the gender divide amongst retires in the UK, the findings reflect the differing attitudes and practices towards private pension schemes held by previous generations.

To be classed as living above the poverty line, retirees need to earn less than £8,254 a year. Almost a quarter (21%) of women questioned by the provider foresee themselves falling short of this amount, compared with 14% of men.

Around 18% of people expect to live off a yearly income less than £8,000, with the State Pension payments accounting for an average of 36% of a retiree's income.

Retirement income expert at Prudential, Vince Smith-Hughes, said: "Against a backdrop of rising living costs, the basic State Pension alone is not nearly enough to provide a comfortable standard of living.

"While it's a very valuable source of additional income for millions of pensioners, the State Pension should ideally only represent a part of someone's retirement income, not all of it.

"Relying on the State will see many people retiring below the poverty line this year, which shows the importance of building up a personal pension," he said.


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