July 4, 2007 / 6:36 AM / 12 years ago

State pension insufficient for basics

LONDON (Reuters) - Less than a fifth of those approaching a retirement reliant solely on the state pension are confident they can make ends meet, a survey shows.

A pensioner walks along a street in an undated file photo. Less than a fifth of those approaching a retirement reliant solely on the state pension are confident they can make ends meet, a survey shows. REUTERS/File

Just 15 percent of the over-55s who have no personal pension savings are confident they can afford the basics of everyday life, according to Birmingham Midshires.

That compares to 55 percent among the 55-plus age group who have built up both a personal and state pension entitlement — the highest of any working group, including the full-time employed.

Some 20 million people are not currently accruing rights in a private pension, according to the Pensions Policy Institute.

And with inflation running at 2.8 percent, state pension provision has failed to keep pace with the cost of living.

But, overall, Birmingham Midshires said its findings challenged the stereotype of impoverished pensioners.

It found that today’s over-55s are living life to the full and are more likely than their younger counterparts to be able to afford luxuries.

A tenth of people from the older generation say they are able to indulge themselves with luxuries, compared to just 2 percent of 18-24-year-olds.

Jason Robinson, director of savings at Birmingham Midshires, said: “The over-55s are facing enormous change in their lives and many may be apprehensive about their retirement.

“It’s great news that many people can look forward to financial and social freedom in later life.

“But, of course, the more money they have coming in from pensions and savings the more enjoyable retirement will be.”

YouGov questioned 2,214 people for the survey.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below