“Work till you drop” warning on pensions
Back to Topic
Click to Print
Useful Websites
Glossary Term Selection
Some people may have to work till they are 81 to build up a decent pension pot, according to a report.
With the Government carrying out a review of the state pension age, research from Royal London says an average earner who starts saving for an occupational pension at 22, and makes the minimum statutory contributions, would need to work until 77 if they want the sort of “gold standard” pension enjoyed by their parents.
Royal London defines this “gold standard”, which includes the state pension, as two-thirds of pre-retirement income.
For those living in high-income areas, such as Westminster and Wandsworth in London, achieving a pension pot of this size would take till 80 or 81, assuming contributions are not increased.
At the same time, a review for the Labour Party has concluded that employees should double their contributions to workplace schemes, with a target of 15 per cent of earnings going into pension pots.
Traditionally, the state pension age was 65 for men and 60 for wo...
Want to see the rest of this article?
Would you like to see the rest of this article and all the other benefits that Issues Online can provide with?
- Useful related articles
- Video and multimedia references
- Statistical information and reference material
- Glossary of terms
- Key Facts and figures
- Related assignments
- Resource material and websites
