You are here: Home - Uncategorized -

Retirement poverty looms for many

0
Written by:
16/05/2006

The typical UK household will experience a near 60% fall in income at retirement, according to new research from fund manager Fidelity International.

The Fidelity Retirement Index, based on data from public and private sources, indicates that the pension savings and State benefit entitlements of UK workers will, on current trends, replace only 42% of their expected final salary.

For someone retiring on today’s average annual earnings of £22,900 this would mean a retirement income of £9,618, or £185 a week before tax. This is less than the weekly earnings of someone on the minimum wage who works 40 hours a week.

“These figures make depressing reading and show just what a mess our pension system is in compared to some of our European counterparts,” said financial expert Martin Cunningham.

“I don’t know anyone who can afford a 60% cut in their income overnight and a lot of people are in for a miserable retirement I’m afraid.”

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Noise pollution

Everybody needs good neighbours but not noisy ones. Christina Jordan reports

Close