One in six will retire with no pension
According to a new piece of research “Class of 2012” by Prudential one in six people planning to retire this year will have no private pension provision and will depend entirely on the state pension to fund their retirement.
This position is even worse for women who are twice as likely as men to have no pension. 20% of women retiring will depend on state pension compared to 8% of men.
34% of the average person’s retirement income will be made up of the state pension with 35% coming from company pensions and the balance made up from savings, investments, personal pensions, part time work and money from family members.
The research also found out that 26% of people are unclear about the level of the state pension. Many not knowing or overestimating by more than £500 per year.
Understanding how you will fund your pension and what level of income you will receive in retirement has never been more important. Seeking independent financial advice to plan your retirement saving and get the best annuity rates when you come to retirement is simple, contact us for more information.
Author: Robert Trapnell- Right Retirement
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