Less than one in eight of us think we can survive on a State Pension

9 January 2015

pensionsAs a new year starts, and we’re all back at work with no prospect of a bank holiday until April*, you could be forgiven for daydreaming about your retirement. However, we all know we’re not saving enough for our dotages- even the Government knows and this is why auto-enrolment is going to force us all to make some savings- but worryingly few of us actually believe we can survive on a State Pension.

The New State Pension will be around £8,000 per year but, just 12% of over-40s and only  13% of 66 to 70 year olds said they could survive on that amount of money, according to a survey of 2,000 people by OpinionMatters

The largest proportion suggested the reason they would struggle to survive was that even the basics cost more than £8,000 (38%) with 32% of total respondents suggesting that they would look for part-time work to increase their income if they were expected to survive on the state pension. Interestingly, while 37% of 40 to 50 year olds said they would look for part-time work to increase their income, this falls to 26% of 66 to 70 year olds – which suggests that as people age they realise that they may not be able to continue in employment as long as they had hoped.

In order to survive on a state-funded pittance, others would cut back on everything but the essentials (32%) and look to downsize their property (15%).   In addition, 12% would look for suggestions on how to manage their money and 3% would look to their family and friends for support. Good luck with that.

So do you think £8,000 is a reasonable amount of government hand-out to live off, and if not, what are you going to do about it?

*unless you are in NI when you get one in March too.

TOPICS:   Economy   Banking

1 comment

  • Rob
    Live on £8k not a chance Council tax is nearly £2k, chuck in £150 a month for Gas / electric / water £1800, £200 house insurance and thats half of it gone. £77 a week then to cover food, living and a car... not a chance. Only stupid people would think they can rely on the government

What do you think?

Connect with Facebook, Twitter, or just enter your email to sign in and comment.

Your comment