Statistics from the Pensions Policy Institute (PPI) and sponsored by Age UK show that the poorest pensioners are relying on the state pension for over three quarters (78%) of their income. Where other state benefits such as housing benefit or pension credit are included, this figure rises to a whopping 86% of income being provided by the state for the poorest of pensioners.
Even those in the middle bracket of pension income rely on the state pension for 53% of their income (or 61% where other benefits are included).
With the average state pension weighing in at just over £7,000 per person, per year and being the main source of income for millions it doesn’t take a rocket scientist to realise that relying on the state alone for your retirement provision is hardly going to leave you living the life of riley! Add in the fact pension ages are already rising to 67 (and further plans are afoot to rise to 68 between 2037 and 2039) these members of our society are simply going to have a difficult time unless they plan.
There will be no spending time with our family, extensive travelling or holidays, car upgrades, gifts and golfing/fishing twice a week unless you do something about it. Start early, plan ahead and contact your local Independent Financial Advisers to get advice and start building your own Financial Fortress!