UK state pension lowest amongst advanced economies

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05 Dec, 2017

UK state pension lowest amongst advanced economies

UK workers who rely solely on state pensions face a bigger drop in income when they retire than the majority of the world’s developed economies, claims a respected intergovernmental economic organisation.

The study comes from the Organisation of Economic Co-operation and Development (OECD), an organisation consisting of 35 highly developed economies across the world.

The report found that the state pension systems in OECD nations such as Japan, Germany, France, Italy, the United States, Canada, the Netherlands and Ireland to name but a few, all pay out a higher proportion of working income than the UK does when workers retire.

In fact, the average UK pensioner can expect to receive just 29% of what they had been earning after they retire. Indeed, only South Africa, which isn’t included within the OECD spectrum, is less generous than the UK.

"The OECD has confirmed what we have long suspected - the UK is bottom of the league for pension provision," said Frances O'Grady, the TUC's general secretary.

"Working people in Britain face the biggest retirement cliff edge of any developed nation".

When "voluntary pensions" are included, the UK’s figure is much improved at 63% but still stands below the OECD average from other nations at 69%.

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