One in eight Brits will retire in 2018 without a pension

Published by Holly Black on 28 March 2018.
Last updated on 28 March 2018

Retiree

Almost one in eight people who are set to retire this year will have no pension savings to rely on, according to new research.

Prudential’s annual ‘Class of 2018’ study reveals that women are twice as likely as men to have no pension savings, with some 18% of those set to retire in 2018 having no retirement savings in place, compared to 7% of men.

On a more positive note, the proportion of people retiring with no pension has fallen from 23% in 2008 to 12% this year.  

One in 10 people due to stop working this year will rely solely on the State Pension for their income through retirement, which will be £164.35 a week in the 2018/2019 tax year.

Even those who do have savings expect the State Pension will account for a third of their retirement income. Savers are also relying a little more on the State Pension for a greater proportion of their income. In 2008, the State Pension accounted for 32% of retirees’ total income, compared to 33% today.

Stan Russell, retirement income expert at Prudential, says: “The number of people retiring without a pension is down and that is good news, but there is still some distance to go and it is worrying so many people will be entirely reliant on the State Pension for their income in retirement.” 

People with no retirement savings of their own will have to manage of an income well below the Joseph Rowntree Foundation’s Minimum Income Standard. This is a measure of what people estimate for an acceptable minimum standard of living. 

It reveals that the minimum income for a single pensioner is £192.27 a week – leaving those relying solely on the State Pension short by £27.92 a week or £1,452 a year.

Mr Russell adds: “While the State Pension is an important part of retirement income, it shouldn’t be the only part and those still in work should, if at all possible, be contributing to a pension and saving towards their retirement.” 

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These articles are

These articles are missleading, those who have never paid a penny into the system are given Guaranteed Pension Credit which is same amount as if they had paid in for 35 years, they then qualify for many other extra benefits that drawing the same pension through fully paid in credits do not qualify for. The only way a person who paid in for 35 years gains is that they can receive additional income from a works pension or earnings and savings do not affect their pension. Those on GPC get a reduction if they have over £10K in savings or receive any other income such as a works pension which should lower the GPC they receive, that is if they declare their savings and works pension, my ex wife I know has not declared these extra incomes and still gets the full £159.35 GPC and a free house under housing benefits. As with all benefits they should have to supply full evidence including bank statements every year to qualify. No wonder the state pension pot is going to run out in 2032 with all these non contributers draining it.

How lovely it would be to

How lovely it would be to receive that amount of state pension. This April those lucky pensioners will get £5+ extra per week while we lucky many on the old pension will get £3+ and no hope of ever catching up. So, after paying in for a lot longer and , obviously, not expecting to outlive the 'new' pensioners, we shall just carry on 'bringing up the rear' in terms of income. Hey-ho, such are the inequalities of life.

The pension situation in

The pension situation in Britain is a shambles. There are so many different rates. We were promised one rate by Mr Osbourne. A sick joke that was. I have worked nearly 60 years with not a single benefit and receive the lowest rate possible. The lazy, the dossers, those that make themselves unemployable all receive the top rate. Am I missing something?

Pensioners retiring now will

Pensioners retiring now will get approx. £165 per week Guaranteed Pension Credit plus a lot more free benefits making them better off than those that paid in the full credits, only reduced if you have a second pensio/income that many do not declare so stealing from the pension pot for others, also reduced if you have more than £10K in savings or investments that are declared, again many put the excess in someone elses name.