One in six people due to retire this year will have no pension of their own to rely on, and will only have their state pension to depend on, research has revealed.
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It has been revealed that one in six retirees this year will depend solely on their state pension after retirement, as they have no pension savings or company pensions of their own.
Overall, retirees will rely on the state for an average of 34% of their retirement income. Company pensions account for 35% of people’s retirement income, while the rest comes from a mixture of savings, investments and personal pension savings.
“While the state pension is a safety net for pensioners in the UK, it should only ever be regarded as part of an overall retirement plan,” said Vince Smith-Hughes, retirement income expert at Prudential.
“For far too many people, the state pension has become the default income option in retirement. Even those who have some private provision depend so heavily on the State that it makes up a third of their retirement income.”
The research also found that women were more than twice as likely to have no pension as men. It was found that 20% of women will rely solely on their state pension, compared to just 8% of men.
“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,” added Mr Smith-Hughes.
“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.”
You can compare pensions with Money Expert.