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

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