State pension the only income for millions of retirees
More than a million pensioners rely purely on the state for income, an alarming official report shows.
The figures from the Department for Work and Pensions reveal the scale of Britain’s savings crisis – and show it’s worsened since the financial crash.
The number of single retirees who have no income from savings or private pensions has risen by a quarter in the past six years, according to the study. The figure has hit 1.1million, the highest it has been in more than 20 years. Many are widows who had been relying on their spouse’s pension to top up their incomes.
More than one million retired people now rely on the state for their only source of income - the highest in 20 years. The shocking figures reveal the scale of Britain's saving crisis
The average amount of weekly state payouts single pensioners receive – including income-related benefits – is £188, according to the Government report. This puts the taxpayer bill for Britain’s 4.5million single pensioners at around £850million a week, analysis by pensions firm Just showed.
It also said there were 330,000 retired couples who had no source of income other than state pension and income-related or disability benefits.
The flat-rate state pension introduced last year is regarded as barely large enough for basic comforts. It ensures retirees get £159.55 a week – £8,297 a year – if they have amassed at least 35 years of full national insurance contributions. Most people who retired last year did not receive the full payout.
A Freedom of Information request found only 41 per cent of the 153,990 who claimed a state pension for the first time, got this amount.
The average amount of weekly state payouts single pensioners receive – including income-related benefits – is £188, according to the Government report
Just’s Stephen Lowe said: ‘The state will never provide a retirement income that allows for many comforts … These figures show we need to encourage people to save and plan for their retirements.’ Workers are automatically enrolled in a company pension unless they choose to opt out. The Government also gives savers access to their entire pension at the age of 55, rather than giving it as a monthly income.
A report by Aegon yesterday found men put almost three times more than women into their pensions. Aegon’s Kate Smith said: ‘The gender pay gap means men are effectively saving more [in automatic workplace pensions] without even thinking about it.’