Up to 12% of people retiring in 2018 have not made any financial provision for their retirement, according to fresh research from Prudential. This figure includes 10% who will be reliant on the state pension to support them throughout their retirement.
Consequently, these individuals will be starting their retirement on £1,452 a year less than the minimum income standard for a single pensioner laid down by the Joseph Rowntree Foundation.
The organisation that campaigns for social change says that a single pensioner needs an income of at least £192.27 a week to have an acceptable standard of living in retirement.
A pensioner retiring after 6 April this year would have a maximum weekly state pension of £164.35 a week or just over £8,500 a year.
Women were more than twice as likely to be retiring without adequate private provision, with 18% of women having no company or private pension, compared to 7% of men.
Stan Russell, retirement income expert at Prudential, said: “The long-term trend for the number of people retiring without a pension is down and that is good news. But there is still some distance to go and it is worrying so many people will be entirely reliant on the State Pension for their income in retirement.
“While the State Pension is an important part of retirement income, it shouldn’t be the only part and those still in work should if at all possible be contributing to a pension and saving towards their retirement. It is never too early to start saving into a pension and even a small amount each month can make a difference and help from a professional financial adviser can be invaluable in helping plan for retirement.”
Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.
.png)
Join the conversation
Jump to latest comment and add your reply
the only people to get rich here are the spivs in suits selling them, you would need to live to at least 110 to stand any chance of getting your money invested back, isn't this why most of us on here got into property investment, it's why i did 30 yrs ago, it enabled me to give up the day job 10 yrs ago at 54, i've never looked back.
It's pieces like this that make the "see how good renting is" articles sound so ridiculous. The truth is unless you own your home you're totally at the mercy of your landlord and the market.
I can't imagine anyone really wants to be renting after they've retired unless its a planned downsize into a retirement type community.
Please login to comment