‘Pensions time bomb’ for Britain's middle-aged workers

News


17 Oct, 2017

‘Pensions time bomb’ for Britain's middle-aged workers

The UK’s middle-aged workers are sleepwalking into retirement poverty, experts warned on Monday.

Four in ten people aged between 40 and 65 cannot accurately estimate their total pension savings for retirement.

Just over a third of 60 to 65 year olds who took part in a questionnaire by the JLT Employee Benefits research do not know the size of their retirement fund. Additionally, two thirds of 40 to 65 year olds with pension savings of under £250,000 still believe their pension pot will end paying out more than the UK state pension.

However, current estimations suggest that £250,000 of savings would actually provide less than £159.55 per week – the current full state pension.

Richard Williams at the pension specialist group said: “We are in the grip of a mid-life pensions crisis”.

“Talk of a pensions time bomb is not greatly exaggerated. Indeed, the yawning gap between expectation and reality when it comes to retirement savings is a real concern”.

“Millions are approaching retirement relying too heavily on inadequate pension pots”.

“They are sleepwalking into potential impoverishment”.

Only 29% of participants in the survey said they received enough support at their workplace to manage pensions.

Two thirds of recipients said they would welcome retirement planning as a benefit of employment.

On Monday, the UK Government started a new initiative to persuade people to start saving into a workplace pension.

So far, nearly nine million people have been automatically enrolled since the system was launched five years ago in 2012, with the figure expected to reach 11 million by 2018.

Today's earlier news - UK inflation at highest since April 2012