UK Pensions Bottom Of The League
6th December 2017.
Britain’s state pension is the least generous of the world’s leading economies when compared with the average wage, says a new report.
The Organisation for Economic Cooperation and Development has found that British workers lose more of their earnings on retirement than any other top world nation.
On reaching the age of 68, Britons collect a pension equivalent to 29 per cent of average post-tax earnings. Mexico is the only other country to provide a state pension below 30 per cent of the average net wage, at 29.6 per cent.
The new report suggests introducing a private sector pension scheme for long-term planning, with many individuals experiencing a sharp fall in living standards on retirement.
The findings come amid concerns about rising pensioner poverty and struggling to make ends meet. The Joseph Rowntree Foundation reported this week that 300,000 more pensioners were living in poverty last year than in 2013, the first sustained increase in 20 years.
Nearly 19 per cent of people over the age of 75 have incomes below the poverty line, the OECD said. It blamed the “low level of the state pension”.
The OECD’s annual report, Pensions at a Glance, painted a better picture for Britain once voluntary private pension schemes were taken into consideration. In that scenario, incomes did see a substantial increase of 62.2 per cent. The government introduced pensions auto-enrolment in 2012 to make sure more workers would be saving for retirement.
A spokesman for the Department of Work and Pensions defended the state pension, claiming it was protecting the poorest individuals, but did admit “there’s always more to do”.
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