UK is Unprepared for Retirement

A quarter of workers approaching retirement are not paying into a pension, and instead are relying on the state to fund their later life

Emma Wall 20 November, 2013 | 12:59PM
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Could you live on £110 a week? A quarter of workers aged 55 or more are banking on this sum funding their retirement. Thanks to the rising cost of living and a lack of financial know-how, thousands of Britons approaching retirement are not paying into a pension plan and instead will have to survive on the state pension. 

According to a survey by, a third of working Britons are not paying into a pension and less than one in five of these have any savings or investments to fall back on. Instead, these workers are relying on the state to fund their retirement. It could be a risky bet, as an increasing number of people overestimate how far a state pension will stretch to cover their financial needs. 

One in six over 55 year olds expect to be shouldering credit card and mortgage debt into retirement - putting extra strain on their pension income. 

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About Author

Emma Wall  is former Senior International Editor for Morningstar