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The UK's Pension Crisis

THE UK'S JPENSION CRISIS THERE HAS BEEN A CALL TO ARMS OVER A "PENSION CRISIS" IN THE UK, BECAUSE PEOPLE JUST AREN'T SAVING ENOUGH MONEY TO SUPPORT THEIR RETIREMENT. THE PROBLEM? 1. ABILITY TO SAVE £220,276 Total amount needed to save to live on minimum wage in retirement Amount per month one would need to save for minimum wage pension pot, from age 25 1.7 MILLION That's over 50% of the average monthly earnings of the 1.7 million people currently on minimum wage 50% 2. ATTITUDES 1 in 3 workers are not confident they will have enough money to retire comfortably. Number of years average Briton's life savings will last. Fewer than half of these have actually tried to calculate their retirement needs. HSBC CONDUCTED RESEARCH THAT FOUND: 19 Percentage of retirement saved for 56% 37% Average number of years a Briton lives for post-retirement. Global average: 56% UK average: 37% THIS MEANS THAT BRITAIN IS THE WORST IN THE WORLD AT SAVING FOR RETIREMENT. 3. THE RETIREMENT POPULATION £74 The government currently spends around £74bn on state pensions to BILLION support those in retirement O 2011 凹 2040 Over 65 O Over 65 As of 2011, % of the British population are over 65 This figure is set to rise by 50% by 2040, at which point over 15 million people will be past the state pension age 4. WHY THE INCREASE? SINCE 1980 15% 1 32% UK Life Expectancy increased by 15 % UK Mortality Rate - dropped by 32% 86 YEARS Less people are dying before retirement age, and retirement is lasting longer, with women's life expectancy around 86 years. Womans average life expectancy 5. PRIVATE PENSIONS THE GOVERNMENT ISN'T GETTING THE SUPPORT IT NEEDS FROM THE POPULUS. 35% 32% Men under 65 Women under 65 Percentage of people under 65 who paid into a private pension 2011/12 POSSIBLE SOLUTIONS BETWEEN SOMEONE SAVING FROM THE AGE OF 25 AND SOMEONE FROM THE AGE OF 40, THE EXTRA 15 YEARS COULD ADD UP TO £600,000 INTO THE PENSION POT ON AN AUTO-ENROLLMENT SCHEME. 25-40 3. 600K an extra15 years IF AN EMPLOYEE CONTRIBUTED 5% AND EMPLOYER CONTRIBUTED 10% FROM THE AGE OF 25, THAT EMPLOYEE COULD HAVE OVER £1M IN THEIR PENSION POT 5% ££ IM+ 10% THAT'S £75,000 A YEAR BY THE TIME THEY'RE 70. THE SAME METHOD STARTING AT AGE 40 WOULD LEAVE RETIREE ON LESS THAN HALF THAT AMOUNT ALL STATISTICS WERE RESEARCHED AND CHECKED BY THE TEAM AT SELLPENSION.CO.UK

The UK's Pension Crisis

shared by mrssusieingram on Sep 09
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The desperate state of the UK's saving habits for retirement

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Sell Pension

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Economy
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