You are here: Home - Uncategorized -

Retirement poverty looms for many

Written by:

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.”

Related Posts


Tag Box

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.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

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...

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...

Money Tips of the Week

Read previous post:
Noise pollution

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