2nd July 2010
The meagre state pension is the sole source of income for nearly
a third of pensioners in the UK, according to official
statistics.
Figures published today by the Office for National Statistics
(ONS) as part of its Social Trends survey show that 31% pensioners
solely rely on the state to provide for their retirement.
The survey also showed that single women are the most reliant on
the state, with 42% having no other provisions, compared to 31% of
single men and 19% of pensioner couples.
The ONS said the majority of people in the UK believe the state
pension should be enough to provide for their retirement alone,
with 59% of those who responded to the survey saying it is the
government's responsibility to ensure elder citizens are
financially stable.
Benefits currently cost the government £136bn, with state
pensions taking up 60% of that amount - meaning pensions account
for the highest proportion of benefits expenditure.
In comparison, 2% (£2.6bn) was spent on benefit for children,
and 13% (£17.5bn) on people with non age related disabilities, said
the ONS.
Meanwhile, Scottish Widows has reported a dramatic drop in
pensions savings in the UK.
The pension plan provider revealed that just 48% of savers are
saving adequately toward their pension - the lowest level since
2006.
Ian Naismith, Head of Pensions Market Development at Scottish
Widows said: ""The last two years have been tough on the economy,
and we are finally seeing the effects trickling through to pensions
savings. The previous three years saw a steady rise in the number
of people saving adequately for retirement, but now we are seeing
the full impact of the downturn on people's retirement pots. While
there are signs that the economy is recovering, the nation's saving
habits paint a very different story.
"There is still a great deal that needs to be done from both the
Government and the industry to better encourage pensions savings
for the long term, particularly in the current economic
environment. With 21% of those that should be saving putting
aside nothing at all there is still a big challenge
ahead."
Claims Financial
Testimonial
"I just had to put pen to paper and write to say I'm more than delighted with my settlement that you won me back from my PPI I had with Lloyds TSB. The Claim Forms were simple to fill in. It was a breeze"
Mr R Evans 11 Nov 2010