Study by Prudential finds many people are facing a bleak financial outlook, with 14% relying solely on state pension
One in five people retiring in Britain in 2013 will fall below the income poverty line according to a study by Prudential, which also found that nearly a quarter of women will enter retirement entirely dependent on the basic state pension.
Prudential’s Class of 2013 research, based on interviews with 8,676 over 45-year-olds and another 1,007 people retiring this year, found that many are facing a bleak financial outlook.
One in seven (14%) people planning to retire in 2013 will depend on the state pension, currently a maximum of £110.15 a week, as they have no other pension arranged. Among women the figure rises to 23% compared to 8% of men.
Even those with a small private pension may still be below the poverty line, which the Joseph Rowntree Foundation estimates to be £8,254 a year for a single pensioner in the UK. Prudential found that 18% of people retiring this year would have an income below that level.
Chosen excerpts by Job Market Monitor
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