One in eight will retire with no pension in 2018 – but the number without savings is shrinking
28 March 2018
- One in eight people (12 per cent) plan to retire this year with no pension
- Women feel the pain worst - 18 per cent retiring without a pension compared to seven per cent of men but the numbers without pensions are falling
- Prudential’s Class of 2018 will rely on the State Pension for a third of their expected retirement income on average
Nearly one in eight people retiring this year (12 per cent) have made no provision for their retirement, including 10 per cent who will either be totally or somewhat reliant on the State Pension, according to new research from Prudential1. This leaves them starting their retirement with an income of around £1,452 a year below the Joseph Rowntree Foundation’s (JRF) Minimum Income Standard for a single pensioner2.
The findings are part of Prudential’s unique annual study – now in its 11th year - which tracks the finances, future plans and aspirations of people planning to retire in the year ahead.
There is good news as the numbers retiring without a pension is lower than the 14 per cent in 2017 and now nearly half the 23 per cent recorded in 2008. Women are more likely to have no retirement savings - 18 per cent will retire without a pension this year compared with seven per cent of men. The gap is narrowing over time - in 2016, 22 per cent of women had no retirement savings compared with seven per cent of men. While in 2008, the year our research began, a third of women (32 per cent) were planning to retire without a pension.
Radio interviews via ISDN or various smartphone apps can be arranged on request.