One in six will retire with no pension in 2012, says Prudential
Published: by
by

One in six people (16%) retiring this year will be solely dependent on the State Pension as they have no other pension, according to research from Prudential.

Women are twice as likely as men to rely on a State Pension, with 20% of women retiring in 2012 with no pension, compared to eight per cent of men.

Vince Smith-Hughes, retirement income expert at Prudential, says: “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.

“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.

“It’s a weak safety net for those without any savings and the real income shock for many retirees will come when the gap between their current earnings and the State Pension becomes apparent.

“If people want to maintain their standard of living in retirement it is important that they start to save as much as possible as early as possible, and the vast majority should join company pension schemes where possible.”

According to Prudential’s research, the average person planning to retire will look to their company pension for 35% of their income and the State Pension for 34% of their income. The remainder of retirement income comes from a mixture of savings, investments, personal pension savings, part time work and family members.  

| Comments (0)| Comment
Related Stories
NHS staff banned from drinking tea or coffee in the office
NHS staff banned from drinking tea or coffee in the office
NHS staff have been banned from drinking tea or coffee in public areas at three Leicester hospitals... read more ›
“Pensions are no longer boring”
“Pensions are no longer boring”
There have been so many changes when it comes to pensions that the topic is “no longer boring”, according to the Shadow Minister for Pensions... read more ›
Over 1,000 Cadbury's workers told to adapt to change or lose jobs
Over 1,000 Cadbury's workers told to adapt to change or lose jobs
Over 1,000 British workers at the chocolate giant Cadbury have been told to adapt to radical change or witness their jobs moved overseas... read more ›
'Disabled workers not worth minimum wage to employers,' claims minister
'Disabled workers not worth minimum wage to employers,' claims minister
A political storm erupted yesterday when it emerged that the UK’s Welfare Minister, Lord Freud, claimed that some people with disabilities are not “worth” the minimum wage... read more ›
Two million retirees struggling to find suitable work
Two million retirees struggling to find suitable work
More than two million retirees are struggling to find suitable work, new research has revealed... read more ›
Employees demand greater workplace tech investment
Employees demand greater workplace tech investment
62% of workers in mid-market firms in the UK want to see greater investment in mobile technology to access back office systems in order to boost their productivity... read more ›
Businesses need to be more digitally aware to attract next generation talent
Businesses need to be more digitally aware to attract next generation talent
Organisations need to get better at presenting themselves as digital enablers in order to attract the next generation of top talent according to managing director in Accenture Digital in the UK, Nick Millman... read more ›
Baxters Soup face walk-outs as staff feel 'bullied' to accept new conditions
Baxters Soup face walk-outs as staff feel 'bullied' to accept new conditions
Baxters Soup has faced walkouts from staff over new pay and shift pattern conditions set to come into place after Christmas... read more ›
HR Grapevine Magazine Latest Edition