8th January 2015
Given the significant amount of Britons saving nowhere near enough for retirement, some 12% of over-40s assert that they would be able survive solely on the State Pension if it came to it, a survey from Partnership has found.
The analysis from the retirement specialist discovered that the largest proportion, at 38%, suggested that they would struggle to survive and 32% suggested that they would look for part-time work to increase their income if they were expected to survive on just the state pension, of around £8,000 per year.
Some 32% admitted they would cut back on everything but the essentials while 15% would look to downsize their property. In addition, 12% would seek for suggestions on how to manage their money and 3% would even look to their family and friends for support.
Notably the survey found that while 37% of 40 to 50 year olds said they would look for part-time work to increase their income, this falls to 26% of 66 to 70 year olds suggesting that as people age they realise that they may not be able to continue in employment as long as they had hope.
Just 13% of 66 to 70 year olds, potentially the age group which understands the financial implications of retirement the most, said they could survive on the New State Pension of approximately £8,000.
Andrew Megson, managing director of retirement at Partnership said: “With the cost of living increasing and people struggling to reach common financial milestones such as purchasing a property, it is easy to understand how some reach retirement with little in the way of pension savings. This should improve with the advent of automatic enrolment but people do need to consider carefully just how much income they need to enjoy their retirement.
“Regularly putting money into a pension and ensuring that you have made sufficient contributions to be eligible for the full state pension are just two of the things that people can do to ensure that they never have to make the choice between heating and eating in retirement.”