State pension ‘not enough’ to retire on says financial advisor
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Paying just over a quarter of average pre-retirement earnings, it is a bigger income drop than pensioners in nations like Romania, Chile, Poland and Lithuania face. The UK figure is just 28.5 percent of average earnings, less than half the 58.8 percent global average. Only Mexico and South Africa have it worse at 23.6 percent and 27.9 percent respectively. Ex-pensions minister Ros Altmann said the research underlined why the Government must keep the under-threat triple lock link.
It guarantees the basic state payout will rise by a minimum of either 2.5 percent, the rate of inflation or average earnings growth, whichever is largest.
Baroness Altmann said: “Millions have no workplace or private provision. It is vital the Government protects pensions relative to average earnings.”
In the developed world, the UK state pension is the worst, says Investing Reviews.
Its British Pension Report says Italians can expect 92.8 percent of their former earnings and people in Luxembourg, Turkey and Bulgaria more than 90 percent.
Independent Age CEO Deborah Alsina said: “Almost one in five pensioners live in poverty and the numbers have been rising steadily since 2012.”
She said if the triple lock was axed, low paid younger workers could have to save double the amount to avoid later-life poverty.
Official figures show 2.1 million older people live in poverty, one million of whom suffer “severe” hardship. Hilary Simpson of the Women Against State Pension Injustice (Waspi) campaign said: “It adds insult to injury to discover that when we eventually get it, it’s one of the lowest pensions in the world.”
A Government spokesman said pensioners in many countries received far less in other ways, such as much lower levels of state-funded benefits.
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