Employee Rewards and Benefits News
37% 'to rely on state' for pension provision
Around 13 million Brits - or 37 per cent of the population - have not made pension arrangements and will be relying on the state to fund them when they hit retirement age, it has been said.
According to research by Barings Asset Management, the number of people without their own pension scheme is growing at a rate of two per cent each year.
Furthermore, the number of women facing the prospect is significantly larger than men, as 40 per cent of females have no plan, unlike 33 per cent of men.
Marino Valensise, the chief investment officer at Barings, said it is easy to blame the current economic climate and the strain it exerts on most people's finances, though ignoring the issues is only going to create an even bigger problem later in life.
"People still seem to be burying their heads in the sand but we strongly recommend seeking professional financial advice to help them understand exactly what they have in their pension pots and what sort of income they'll be able to expect in retirement."
Earlier this month, Age Concern and Help the Aged lost a high court battle to change the law to stop employers forcing workers out of their jobs at the default retirement age of 65 without a redundancy packet, signalling the need to assess older workers' rights, according to the presiding judge.
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