A report today has warned that one in five Britons has failed to save a penny towards a pension, deciding to rely on the state pension.
The report also claims that the country is stuck in an ingrained inertia surrounding pension planning, reporting that half of the workforce have failed to prepare properly for their retirement years.
More than 5,000 people were asked in the over 30 age range, earning more than £10,000 a year – all people who should be earning money.
The survey found that of those 5,000 people, nearly half were preparing ‘inadequately’ for their retirement, while a fifth were not preparing at all, despite the UKs state pension being one of the worst in the UK.
The state pension, worth around £100 a week at the moment, is only available to those who have built up enough years of national insurance contributions, although there are plans to simplify the system, and increase the payment.
People surveyed also wanted to work to an average maximum age of 66 and a half years old, although the average worker wanted to retire just beyond their 62nd birthday.
Amazingly, people wanted to retire on an average income of £24,300, meaning they will have to save a lot of money at current annuity rates.
Head of Pensions from Scottish Widows, Ian Naismith warned as such, explaining, ‘”Much higher saving levels are needed to get towards the average that people aspire to,’ he said. ‘The message is that everyone should be putting aside as much as they can afford for their retirement.”