British Workers are the least prepared for retirement
According to the HSBC study, more than half of the UK working population is not preparing adequately for retirement, with one in five saving nothing at all. The international study also showed the average retirement in the UK is expected to last 19 years, but the average person’s retirement savings will only last for seven.
The latest figures from the Office for National Statistics (ONS) have also revealed UK workplace retirement saving has hit a 15-year low.
Membership of UK workplace pension schemes dipped to 46% in 2012 – the lowest level since 1997. The ONS data stated, those in professional occupations were most likely to have a pension, with 74% putting money into a retirement pot whereas, just 19% of people in sales and customer service jobs were saving into a workplace pension in 2012. Last October automatic enrolment was launched by the government, in an aim to ensure employees were opted into a company pension scheme unless they stated otherwise, which should result in 10 million people signed up for a pension over the next five years.
The further government proposal for the single tier £144 a week flat rate state pension, in 2017 will reduce the extent of means testing in the UK state pension system, making it more effective for individuals to contribute into additional personal pensions.