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