Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner. Facebook Messenger An icon of the facebook messenger app logo. Facebook An icon of a facebook f logo. Facebook Messenger An icon of the Twitter app logo. LinkedIn An icon of the LinkedIn logo. WhatsApp Messenger An icon of the Whatsapp messenger app logo. Email An icon of an mail envelope. Copy link A decentered black square over a white square.

One in eight people retiring in 2018 ‘have no private pension’

In 2016-17 1,020,000 individuals were classed as being in relative poverty (Getty Images/iStock)
(Getty Images/iStock)

ONE in eight people retiring this year have no private pension savings, a study has revealed.

Some 12% of people planning to retire in 2018 have no private pension of their own, rising to nearly one in five (18%) women retiring this year, Prudential found.

Women retiring this year are more than twice as likely as men to have no private pension of their own to fall back on, the research suggests.

Among men retiring this year, 7% have no private pension, according to the survey of 1,000 people planning to retire in 2018.

One in 10 (10%) people said they will be totally or somewhat reliant on the state pension to fund their retirement, with others having some other form of savings.

Prudential said this could leave these people starting their retirement with an income of around £1,452 a year below the Joseph Rowntree Foundation’s minimum income standard for a single pensioner.

The poll, which asked people planning to retire in a given year about their finances, found the number of people retiring without any private pension is falling.

In 2017, 14% of people retiring in that year had no private pension and the proportion is now nearly half the 23% recorded in 2008.

The gap between men and women is also narrowing – in 2016, 22% of women had no private retirement savings compared with 7% of men.

The introduction of automatic enrolment into workplace pensions in 2012 has transformed the retirement savings culture, with around nine in 10 people staying in their pension rather than opting out.

Minimum contributions into workplace pensions are gradually being stepped up from next month, with a further increase in 2019.

Prudential said taking the JRF’s minimum income standard of £192.27 a week for a single pensioner – a benchmark of the income required to support an acceptable standard of living – those relying on the state pension will fall short of the minimum standard by £27.92 a week, or £1,452 a year.

On average, people expecting to retire this year estimate the state pension will account for around a third (33%) of their income in retirement, which is lower than the 35% recorded previously in recent years.

Stan Russell, retirement income expert at Prudential, said: “The long-term trend for the number of people retiring without a pension is down and that is good news.

“But there is still some distance to go and it is worrying so many people will be entirely reliant on the state pension for their income in retirement.

“While the state pension is an important part of retirement income, it shouldn’t be the only part and those still in work should if at all possible be contributing to a pension and saving towards their retirement.

“It is never too early to start saving into a pension and even a small amount each month can make a difference.”