Millions mistakenly believe state pension will provide adequate income

About 2.5 million workers in the UK believe that the state will provide an adequate income when they retire, despite it being just £84.25 a week for single people, research has found.

A quarter of employees (27%) have no idea what the state pension is, and one in five respondents (21%) guessed a figure higher than the actual amount, a study by provider B&CE Benefit Schemes revealed.

In addition, 11% of the 780 people surveyed would solely rely on government benefits if they had to retire before pensionable age. 

The survey underlines the unrealistic expectations that many people have about how they will be providing for themselves when they stop working, and also people’s misconceptions about how much the state will provide for them. 

Also, while most people support the principle of auto-enrolment, a key component of the government’s plans for a new national pensions savings scheme, it has yet to convince 40% of those questioned that this is a move in the right direction.

John Jory, deputy chief executive of B&CE Benefit Schemes, said: “It is incredible that some people are still under the illusion that the state will provide for them in retirement.”

The survey also reveals that 38% of those polled think the government’s plans for pension reform should take effect earlier than 2012, as is currently planned.

Women urged to save more for retirement or risk relying on state


 

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