One in seven will retire without a personal pension

One in seven (14 per cent) people planning to retire this year do not have a personal pension, according to research by Prudential.

The study of people planning to retire in 2014 found that 20 per cent of women have no pension savings, compared to 7 per cent of men.

Key findings:

  • The State Pension makes up an average of 35 per cent of an individual’s total expected retirement income
  • For women, the State Pension makes up 42 per cent of expected retirement income compared with 28 per cent for men
  • 39 per cent of respondents either didn’t know how much the State Pension is worth or thought it was worth more than the £113.10 a week payable from April 2014
  • 17 per cent of respondents overestimated the value of the State Pension by at least £880 a year.

Vince Smith-Hughes, retirement income expert at Prudential, said:

“The changes to pensions and how people can take their retirement income announced in the Budget last month will provide savers and retirees with more choices. However they don’t alter the fundamental fact that many people are not saving enough for a comfortable retirement.”

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