Retirees 'need more than state pension'
Published On 1 May 2007
The majority of pensioners will find themselves with an inadequate retirement fund if they rely solely on state pensions, a new report has revealed.According to Friend Provident, two-thirds of pensioners will be unable to live comfortably if they only have the state pension to rely on, while just four per cent believe the state pension is enough to allow for a comfortable retirement.
"Whilst the recent modest state pension increase may see more going into people's pockets each year, our research has found that the vast majority of people need far more money than the state provides in order to live comfortably," said Jeremy Ward, head of pensions marketing at Friends Provident.
"By ignoring how much they need to save to live comfortably in retirement or how soon they need to start saving, many Brits are facing a potential pension shortfall," he added.
The survey also revealed that 69 per cent of people consider a comfortable retirement fund to be at least £600 per month.
The warning coincides with the publication of a report from the Fidelity Retirement Index that predicted British workers face a 50 per cent fall in income when they retire, with the average earner likely to earn live off little more than the minimum wage throughout their twilight years.
