A quarter of over-55s don't have a pension

Old couple and coins

A quarter of over 55s earning a salary are not paying into a pension, research from Confused.com has revealed.

Among those who don't have a pension, less than one in five (17.5%) of all earning adults in the UK have any other investments to fall back on either.

There seems to be a knowledge gap when it comes to retirement too, with nearly half (43%) admitting they don't know what an annuity is.

Meanwhile, 26% of people didn't know they could take a lump sum payment from their pension fund at retirement.

The lack of preparation is worrying, given that 12% of over 55s says they expect to still be in debt when they retire.

"With potentially no income and reliant on a state pension of £110.151 a week, these over 55s are likely to struggle to cover increasing costs of living and also pay off outstanding debts," said Confused.com.

Kate Rose, head of annuities at Confused.com, added: "Retirement should be the time when we put our feet up and enjoy life after decades of work; yet so many of us are underprepared. It's staggering that so many people due to retire in the next 10 years are unaware of their options.

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"Buying an annuity is a once-in-a-lifetime purchase, and getting it right is essential. By shopping around, not only can you ensure you're getting the right policy for you, but by opting to answer just a few extra questions regarding your health and lifestyle, you could achieve up to 40% more income per year."


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