Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
Quick links:
  • Home
  • The Actuary Issues
  • April 2014
04

One in seven 'have no private pension provision'

Open-access content 8th April 2014

One in seven people (14%) in the UK will retire with no private pension this year and will be either totally or heavily dependent on the state, according to research published today.

In its study looking at the future plans and aspirations of people who are preparing to retire this year, insurer Prudential revealed that of the almost 8,000 people polled, the North East had the highest proportion of people (20%) expecting to retire with no private pension, followed by the South West at 20%.

In contrast, those in the North West, Scotland and London will be the least reliant on state pension, with just 8%, 8%, and 12% respectively entering retirement without any private pension savings.

Vince Smith-Hughes, retirement income expert at Prudential, said: 'The changes to pensions and how people can take their retirement income announced in the Budget last month will provide savers and retirees with more choices. However they don't alter the fundamental fact that many people are not saving enough for a comfortable retirement.'

The study showed that almost one in five (18%) of those planning to retire this year would have an income below the minimum income standard as defined by the Joseph Rowntree Foundation. According to the UK-based social policy research charity, a single pensioner would need an income of at least £8,600 a year, while a retired couple would need more than £12,500 a year.

Prudential's poll also highlighted that women were nearly three times more likely to rely on the state for retirement income than men. Its study highlighted that 20% of women have no pension savings compared with just 7% of men.

Just over a quarter (27%) of women surveyed had a company pension compared to almost half (47%) the men. The state pension is expected to make up 42% of women's expected retirement income compared with 28% for men.

Smith-Hughes added that it was important not to fall into the trap of overestimating the contribution that the state would make.

 

This article appeared in our April 2014 issue of The Actuary.
Click here to view this issue
Filed in:
04
Topics:
Pensions
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Actuarial Analyst - Reinsurance Pricing

£40000 - £50000 per annum + bonus and excellent benefits
Reference
118841

Underwriting Assistant - Property (Lloyd's)

London (Central)
£30000 - £40000 per annum + benefits
Reference
118840

Reinsurance Pricing Lead

London (Central)
Negotiable
Reference
118839
See all jobs »
 
 

Most-Popular

 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2020 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200