UK has the second worst state pension in the developed world

27 November 2013

pensions Mexico is the only country in the developed world that has a state pension worse than the UK according to a study.

Analysis from the Organisation for Economic Co-operation and Development (OECD) showed that Mexican workers get 28.5% salary replacement in retirement, while UK residents get a 32.6% of salary replaced directly by state benefits. Meanwhile, over in Italy and France, they're laughing their way into old age as they have the best pensions from the state.

Places like Slovakia and Hungary, still firmly Eastern Bloc, have more generous governments it seems, regarding old people. Over here, the maximum payout of £110.15 is the best you can do, which has seen The National Pensioners Convention all set to lobby MPs, hoping for a living State pension or £178 a week.

Of course, with people getting healthier, babies born now won't see their pension until they are in their 70s, meaning they will get a pension for 30 years as there are likely to be a lot of humans reaching 100.

Mr Scarpetta, behind the study said: "I am very concerned that we are moving towards a more contribution-based system but in many countries especially young people have been unemployed. They are outside the labour market so they are not contributing (into a pension). We hope the economy will kick on and then many of them will indeed get into a job and so on and so forth."

"But they will have fewer years of contribution so potentially there is also a long-term effect of the current crisis which in some countries has been particularly severe, especially for the young generation."

Steve Webb, the Pensions Minister, said: "We are building a UK pension system that is more sustainable for the future. As the OECD recognises, by combining the state pension and income from workplace pensions people many people in Britain can expect an adequate retirement income."

TOPICS:   Banking   Government

1 comment

  • WARWICK H.
    It fails to say you will have to work until you are 90 to achieve this. What a load of drivel

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