A Million Plus Pensioners Totally Reliant On Government Support
Private funds failing to cover pensioner’s expenses.
People are being warned to plan ahead and seek financial advice as to how to make the most out of any savings they accrue during their working life. Group communications director at Just, a specialist retirement services provider Stephen Lowe explains that “the State will never provide a retirement income that allows for many comforts, so for those who do have some savings, good guidance about what to do with those savings is vital.”
Of those already in retirement, roughly 1.1 million pensioners live alone and are totally reliant on income from the state. This number shows a trend of increasing state reliance, up 26% for individuals between the ends of 2011 and 2016. April last year saw a 12 month increase of 15%, adding to fears the problem is continuing to accelerate.
When including couples, 330,000 more people depend on some form of state benefit completely. This figure includes those that are in receipt of disability benefits as well as state pensions and income related benefits.
How Much Does The State Provide For Pensioners?
For single pensioners, the average amount of money they receive is just £188 per week in the year 2015 to 2016. Being aware of how much the government deems sufficient to live on in retirement should encourage those that have not yet reached retirement age to do the best they can to build up personal savings and private pensions.
Pre-retirees should also be aware that this amount is not guaranteed as political decisions may change the state pension landscape. Currently, taxpayers are paying £850 million a week to cover the 4.6 million single pensioners currently in the U.K..
All of those not yet in retirement could benefit from saving as much as possible. As Mr Lowe states, the amount given to state pension recipients is only designed to cover basic needs, anything else is up to the individual to provide for themselves whilst they still can.
Paul Hoskin MD at Hoskin Financial
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