Thousands Fail to Save for Retirement

FUTURE PROOF: Workers are overly reliant on the state pension to provide them with an income in retirement - and it's leaving pensioners below the poverty line

Emma Wall 9 April, 2014 | 4:06PM
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Thousands of pensioners will be living below the poverty line thanks to an inadequate state pension. Failure to save in a personal or work pension will leave thousands with less than £8,600 a year – the income considered the necessary to reach a minimum socially acceptable standard of living.

Women are three times more likely to rely solely on the state pension in retirement, thanks to fragmented working history and lower average wages. According to the annual Prudential ‘Class of’ retirement report nearly one in five people retiring this year will be left with an income of less than £8,600. The highest percentage of pensioners retiring with an income below this threshold was in the South West of England.

The report also reveals a fifth of women and 7% of men retiring this year have no pension savings at all and will be solely reliant on the state pension.

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About Author

Emma Wall  is former Senior International Editor for Morningstar