One in seven will retire with no pension this year - but women are closing the gap on men
22 March 2017
- One in seven people (14 per cent) plan to retire this year with no private or company pension
- They will have to get by on £1,400 a year less than the Joseph Rowntree Foundation’s annual Minimum Income Standard for a single pensioner
- But fewer women are retiring without pensions this year than last year
- Prudential’s Class of 2017 will rely on the State Pension for just over a third of their expected retirement income, on average
Nearly one in seven people retiring this year (14 per cent) has made no provision for their retirement, including 11 per cent who will be either totally or somewhat reliant on the State Pension when they stop work, according to new research from Prudential1. This leaves them embarking on their retirement with an income which is up to £1,400 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 which tracks the finances, future plans and aspirations of people planning to retire in the year ahead. This year’s retirees – the Class of 2017 – provide the tenth annual set of comprehensive insights into the post-financial crisis retirement landscape.
For women planning to retire in 2017, there is some good news as they are closing the gap on men when it comes to retirement income expectations. Although this year will see more than double the proportion of women (19 per cent) retiring without a pension than men (nine per cent) – it is an improvement on 2016 when women (22 per cent) were more than three times as likely as men (7 per cent) to retire without a pension.
JRF’s Minimum Income Standard for a single pensioner of £186.77 a week is a benchmark of the income required to support an acceptable standard of living in retirement. A pensioner retiring after 6 April 2017 and relying solely on the new flat-rate State Pension, would have a weekly income of £159.553, or nearly £8,300 a year – falling short of the JRF minimum standard by £27.22 a week or over £1,400 a year.
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