About 15 million people have no pension savings and face a bleak future in retirement. 31% of UK adults have no private pension provision and will have to rely entirely on the state in their retirement. The full state pension is £159.55 per week, but that is only available to individuals who have a complete record of national insurance contributions.
Even among those with a company pension, the survey reveals few people will benefit from a generous “final salary” arrangement, which is based on their income just before retirement. The FCA found that only 16% of working people have a final salary pension, while 41% will have to depend on a “defined contribution” (DC) pension, where the payouts will depend on the vagaries of the stock market. Most people with DC pensions state that they have relatively little in their pension pot. Around two-fifths have less than £5,000
Even among those with a company pension, the survey reveals few people will benefit from a generous “final salary” arrangement, which is based on their income just before retirement. The FCA found that only 16% of working people have a final salary pension, while 41% will have to depend on a “defined contribution” (DC) pension, where the payouts will depend on the vagaries of the stock market. Most people with DC pensions state that they have relatively little in their pension pot. Around two-fifths have less than £5,000
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