Britain is failing its pensioners
Jennifer Lowe | Latest pensions news, 13 November 2009
The British population is calling for a significant increase in the basic state pension to ease poverty in retirement.
A nationwide study by Club Vita, the longevity experts for private and public sector pension schemes, reveals seven out of ten of the British public - of all ages - think that Britain isn't doing enough for the elderly in their retirement.
A further three quarters strongly believe there should be a substantial increase in the basic state pension.
But we're gradually beginning to understand the impact of increased longevity on the funding of retirement income; whether by the state or via our own savings.
Half of the respondents want to carry on working after they reach their formal retirement age, either by keeping their current job or switching careers.
And those just starting out seem to be the most accepting about the need to work for as long as possible. Over three quarters (77 per cent) of 16-24 year-olds said that they would be prepared to work past the official retirement age, compared with under half of those over 55.
The research also shows a link between household income and plans at formal retirement age. Whereas almost 60 per cent of those with the lowest household incomes expect to officially retire, less than 30 per cent of the highest earners expect to do so.
Nick Flint, chief executive of Club Vita, says, ‘Provided we remain reasonably healthy, greater longevity is obviously a ‘good thing', but it comes at a price.
‘The UK population is slowly - very slowly - beginning to understand the link between longevity and retirement funding, at the state and personal level. We may not be living quite as long as some of those surveyed think - it's actually around a five to six-year increase in typical lifespan from one generation to the next - but our increasing longevity will effect profound changes in our attitudes to work and subsequent retirement.’
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