Tens of thousands of pensioners retiring this year will rely on nothing but the state to fund the retirement because they have no private pension to their name, research suggests.
One in six people retiring in 2012 will quit work without any form of pension saving. They will instead depend almost entirely on state – which will pay a basic £107.45 a week from this Thursday 6 April – to fund their old age.
The revelation comes as the Government makes cuts to the top-ups it gives to the poorest old people. Changes to the Pensions Credit announced in the Budget mean some pensioners will be deprived of up to £276 a year in income.
Our comment: Looking on the brighter side, people with only state pension as income will get the full benefit of this April’s pension increase.
In same poll by insurance provider Prudential has found that the average Briton is planning to rely on the state pension for over a third of their income.