The 800,000 babies born in the UK last year will need to save £2.4m into their pension to retire comfortably, while facing rising student and mortgage debt and care costs for their parents. The Office of National Statistics (ONS) recently released figures showing 813,200 babies were born in the UK in 2011/12, the highest number since 1972.
Following publication of the Office of National Statistics (ONS) latest ‘Pension Trends: Private Pensions 2013′ publication, which reported that the number of active members of occupational pension schemes has reached its lowest level since the 1950s, Scottish Widows is warning that the UK is heading for a ‘perfect storm’ of rising expectations for retirement.
Prudential’s Class of 2013 research, the latest of its annual studies into the financial plans and expectations of people planning to retire in the next year, has for the first time looked at the impact of divorce on retirement finances.
In April 2013, the Government published plans to reform the current state pension into a simple Single-Tier Pension (STP), which subject to the agreement of Parliament, will be in place for people retiring after the 6th April 2016. If you reach State Pension age before that date you will receive your state pension in line with existing rules.
Figures released by the Office of National Statistics (ONS) in June 2013 show that there are now more than one million over 65s continuing to work and earn after passing their anticipated point of retirement. This is the highest number since the ONS started collating this data in 1971.
Research recently published by the Prudential has claimed that tens of thousands of Britons will retire into poverty this year.
Of those who will leave work in 2013, one fifth will be below the poverty line, whilst 14% will have no personal or work pension at all and must expect to rely solely on the State Pension.