Pensioner poverty has been flagged by several charities as a major concern. Nearly one in eight people retiring this year have made no provision for their retirement, according to new research.
The study published by Prudential shows that 12 per cent of people who are about to become pensioners have no private or company pension at all. A total of 10 per cent will either be totally or somewhat reliant on the state pension while 2 per cent have some form of private savings upon which they will rely.
That means they will start retirement with an income that’s around £1,450 a year lower than the minimum income standard for a single pensioner established by the Joseph Rowntree Foundation (JRF) charity.
The report also found that women are significantly more likely to have no retirement savings. Some 18 per cent of females entering retirement in 2018 will do so without a pension, compared to 7 per cent of males.