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thomas davison

Britain faces old age poverty timebomb as one in five put NOTHING in a pensionJust 46% save the minimum needed for a comfortable old age
Most people hope for �24,500 to have a decent standard of living
By Sean Poulter
PUBLISHED: 01:37, 21 May 2012 | UPDATED: 08:22, 21 May 2012

A fifth of workers are putting nothing into a personal pension, threatening poverty in old age.
People are sacrificing saving for their retirement in favour of covering immediate bills such as mortgages, heating and food.
The proportion of those who are saving the minimum needed into a personal pension to provide a comfortable old age has fallen to an all-time low of 46 per cent.
Worrying: Research found a fifth of workers put nothing away towards their pensions - risking plunging into poverty when they come to retire. (Posed by model)
This is down from 51 per cent in 2010 and 54 per cent in 2009, according to figures published today by pension experts Scottish Widows.

At the same time, one in five people over 30 have put nothing aside to provide any pension above that provided by the state.
Scottish Widows calculates that workers need to save some 12 per cent of their income into a pension each month to ensure they have a comfortable retirement.
Warning signs: Most people would need a pension pot of �450,000 to provide an annual retirement income of �17.5k
It said most people are hoping for a retirement income of �24,500 in order to provide a decent standard of living.
Based on a state pension of �7,300, this means they have to find another source to provide the remainder �17,200 of annual income.
However, in today�s financial climate, a worker would need to have a pension pot of �450,000 to buy an annuity that would offer an income of this scale.
This is three times higher than the average pension pot that most workers are likely to have based on their current savings pattern.
Scottish Widows said the Government needs to take urgent steps to alert the nation to this pensions timebomb.
�If we do not act fast, we all face at best disappointment, and at worst severe poverty in old age,� it said.
The company head of pensions development, Ian Naismith, said: �These are alarming findings as UK pension provision has hit an all-time low.
�People are saving less for old age yet their expectations remain high as the majority fail to recognise the harsh reality of retirement.

Paying the price: A growing number of people will find they have not invested enough to meet the cost of living upon retiring, a survey found. (Posed by model)
�With an aging population, and on-going economic difficulties, it has never been clearer that we need to do more to shift people quickly from their unrealistic �rose-tinted� expectations of retirement.
�They must either increase their savings substantially or change their expectations of when they might retire and how much income they will receive.�
He said there are particular fears for the one in five who have no personal pension.
�People failing to make any kind of provision for their later years are in a particularly precarious position,� he said.
�Some may think that they will be able to fall back on the state pension, property or a partner�s pension and whilst these options may provide some level of support, saving nothing for retirement could be a fast track to financial problems and serve poverty in later life.�

You have to laugh, most people at this time cannot even afford to put petrol in their cars to get to work never mind put 12% of their pay into a known PONZI scheme run by insurance companies for their own benefit and not for the pensioners.
Our P.A.T. card would take all this worry away and get rid of the PONZI insurance companies at the same time.

2Anne · Joined: 04 May 2008 Posts: 399 Location: Norfolk

Whats new about this??
There are thousands of pensioners already who have never saved for their old age and expect the government to feather bed them-which it does.
I have heard that when the fuel allowance is paid most of it goes straight into the pockets of bingo halls etc.
There are feckless old and young and all of the scum are living on welfare.