One in six will retire with no pension

One in 6 people who are planning on retiring this year have no personal pension and will depend soley on their state pension to fund their retirement. The study by Prudential’s Class of 2012 study also shows that 20 per cent of women retiring in 2012 will depend on the State Pension compared with just 8 per cent of men. As of Friday 6th April 2012 the state pension payment rose to £107.45 a week, for the average person State Pensions will make up 34 per cent of total income, 35 per cent will come from company pensions and the remaining 30 per cent will be a mixture of savings and investments as well as personal pension savings. Vince Smith-Hughes, retirement income expert at Prudential, said: “For far too many people, the State Pension has become the default income option in retirement. Even those who have some private provisions depend so heavily on the State that it makes up a third of their retirement income. “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. Seeking early advice from a financial adviser should also be a prerequisite to helping people achieve the level of retirement income they want and need.”

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