One in five women who retire this year will do so without any pension savings. That’s twice as many as for men – 19% for women, and 9% for men. That means that more than one-in-seven of the people who retire this year will be left with £1,400 per year less than the minimum recommended standard for retirement income.
As ThisIsMoney reports, that is a little better than last year, but a mixed picture overall –
“This, however, marks an improvement for women from last year, when 22 per cent were in this position. But it’s a step backwards for men, 7 per cent of whom retired with no savings last year, according to a new study by pension provider Prudential… The survey of over 10,500 non-retired UK adults, including 1,000 intending to retire this year, shows that overall, one in seven people who are retiring this year do not have any pension savings… And one in ten said they will rely entirely, or almost wholly, on the state pension when they stop working… Prudential said this would leave them to retire with an income which is up to £1,400 a year below the Joseph Rowntree Foundation’s minimum income standard for a single pensioner… According to JRF, a single pensioner needs around £187 a week to have an acceptable standard of living in retirement… But a pensioner retiring after 6 April and relying solely on the new flat-rate state pension would only receive a weekly income of £159, or nearly £8,300 a year – which is £1,400 a year short of the minimum income standard.”