Pensions - Articles - British workers face one of the biggest income drops

 “The UK State pension was designed to cover people’s basic living costs. It doesn’t leave room for luxuries. For many years the State pension was only increased in line with inflation, the Government is now playing catch up and pensioners are benefiting from the Triple Lock. The jump from £119.30 to £155.65 per week for new pensioners reaching State Pension Age from 6 April 2015 looks good on the face of it, but few new retirees will get the full amount in the early years.

 “The harsh reality is that if people want a reasonable income in retirement they will have to take personal responsibility and save for themselves. For most, reliance purely on the State pension risks financial struggle in later life. The picture is much brighter when State and private pensions are added together as shown by the OCED report, clearly illustrating the UK’s history of reliance on workplace and private retirement saving. For many people private savings will become an increasingly important component to achieving the income they aspire to in retirement.”