Peanuts: British workers face a bigger financial shock in retirement than their Continental cousins thanks to our proportionally low state pension . British workers face a bigger financial shock in retirement than their counterparts on the Continent thanks to our proportionally low state pension, a study has claimed. Research carried out by the think-tank International Longevity Centre UK (ILC) looked at how much elderly Britons get and how this compares to the income of workers. It found the figure paid here – £113.10 a week – is typically only one third of the average working person’s income after more than 40 years in the workforce. Proportionally, this makes it one of the least generous state pension schemes in Europe. As a result, people who retire without a private pension or any other form of nest egg receive a sudden financial shock, making it difficult to cover bills such as heat, light, food and transport. By comparison, the state pension in the rest of the EU works out at around half the national income. Some countries are even more generous, with the Italians getting 60 per cent of the average working wage. Workers in Greece currently get a figure equal to the working wage – although they do have a lower average working wage than the UK and their public finances are in greater disarray. The study also found that the UK has a greater number of pensioners at risk of poverty, 16 per cent, compared to a European average of 13 per cent. But the report concluded that the picture was not entirely gloomy for older people in the UK. It pointed out that the Winter Fuel Allowance has had a positive impact on pensioners’ quality of life – with only 3 per cent of old people here complaining about living in cold homes, compared to European average of 12 per cent, and a staggering 52 per cent of those in sunny Portugal. The ILC has argued for the scrapping of the traditional concept of retirement with efforts to encourage older people to remain in the workforce and earning money to cover their bills. To the workhouse with you old man! The International Longevity Centre UK, which carried out the research, has argued for older people to remain in the workforce and earning money to cover their bills . Helen Creighton, of the ILC UK, said: ‘Different countries have their own strengths and weaknesses. ‘While the UK has a good record on warm homes, thanks to the success of the Winter Fuel Allowance, Nordic countries have the best record on keeping older people in employment, which leads to higher incomes and fewer problems of social isolation. ‘The Government aspires for the UK to be the best place in the world to grow old. But while the UK is by no means the worst place in Europe to grow old, we’ ve got a lot to do to top the European league. ‘The Government is right to aspire to be the best. But to achieve that we must look at and learn lessons from our European colleagues.’ She added: ‘Europe’s ageing has profound implications for individuals, governments and businesses, and the UK must adapt to a Continent where it is projected that almost one in three people will be over the age of 65, and more than 1 in 10 will be over the age of 80 by 2060.’ Richard Willets, Director of Longevity at Partnership, which sells annuities to cover elderly care costs, said: ‘As with the UK, the rest of Europe is rapidly going grey. 'This raises a unique set of challenges for government, business and individuals who not only need to plan for their own later life but also need to put structures in place that will help society at large.’
The UK state pension is typically just a third of average working income .
In other countries it varies from 60 to 100 per cent of the average wage .
Study also found the UK has greater number of pensioners at risk of poverty .
Peanuts: British workers face a bigger financial shock in retirement than their Continental cousins thanks to our proportionally low state pension . British workers face a bigger financial shock in retirement than their counterparts on the Continent thanks to our proportionally low state pension, a study has claimed. Research carried out by the think-tank International Longevity Centre UK (ILC) looked at how much elderly Britons get and how this compares to the income of workers. It found the figure paid here – £113.10 a week – is typically only one third of the average working person’s income after more than 40 years in the workforce. Proportionally, this makes it one of the least generous state pension schemes in Europe. As a result, people who retire without a private pension or any other form of nest egg receive a sudden financial shock, making it difficult to cover bills such as heat, light, food and transport. By comparison, the state pension in the rest of the EU works out at around half the national income. Some countries are even more generous, with the Italians getting 60 per cent of the average working wage. Workers in Greece currently get a figure equal to the working wage – although they do have a lower average working wage than the UK and their public finances are in greater disarray. The study also found that the UK has a greater number of pensioners at risk of poverty, 16 per cent, compared to a European average of 13 per cent. But the report concluded that the picture was not entirely gloomy for older people in the UK. It pointed out that the Winter Fuel Allowance has had a positive impact on pensioners’ quality of life – with only 3 per cent of old people here complaining about living in cold homes, compared to European average of 12 per cent, and a staggering 52 per cent of those in sunny Portugal. The ILC has argued for the scrapping of the traditional concept of retirement with efforts to encourage older people to remain in the workforce and earning money to cover their bills. To the workhouse with you old man! The International Longevity Centre UK, which carried out the research, has argued for older people to remain in the workforce and earning money to cover their bills . Helen Creighton, of the ILC UK, said: ‘Different countries have their own strengths and weaknesses. ‘While the UK has a good record on warm homes, thanks to the success of the Winter Fuel Allowance, Nordic countries have the best record on keeping older people in employment, which leads to higher incomes and fewer problems of social isolation. ‘The Government aspires for the UK to be the best place in the world to grow old. But while the UK is by no means the worst place in Europe to grow old, we’ ve got a lot to do to top the European league. ‘The Government is right to aspire to be the best. But to achieve that we must look at and learn lessons from our European colleagues.’ She added: ‘Europe’s ageing has profound implications for individuals, governments and businesses, and the UK must adapt to a Continent where it is projected that almost one in three people will be over the age of 65, and more than 1 in 10 will be over the age of 80 by 2060.’ Richard Willets, Director of Longevity at Partnership, which sells annuities to cover elderly care costs, said: ‘As with the UK, the rest of Europe is rapidly going grey. 'This raises a unique set of challenges for government, business and individuals who not only need to plan for their own later life but also need to put structures in place that will help society at large.’
state pension, a study has claimed. Research – £113.10 a week – is typically only one third of the average working person’s income after more Italians getting 60 per cent of the average disarray. The study also found that the UK has a greater number of pensioners at risk of poverty,