Pensions dark age on the horizon
New research from AXA shows that more than three in five (64%) of Britons plan to rely on the state membership as the membership of occupational pension schemes declines.
The United Kingdom sits at the bottom of the G7 league for state pension provisions, and AXA has called for the structure of state and occupational pensions to be reviewed.
If the state system remains as it stands then there is a significant chance of the British elderly entering pensioner poverty, according to AXA.
In Italy the state pension is 68% of average earnings, but in the UK it is just 31%.
Head of Savings and Pensions Policy Steve Folkard has warned that the UK could enter a pensions dark age unless a serious and concerted effort to improve the situation is undertaken.
Folkard went on to say that whilst the British pensions system was once sound, it now presents a massive challenge for any future government, and predicted that pensioner poverty is set to increase substantially.
Specifically, he aired concern at the means-testing system, which may cause some not to save for retirement.
Last month Aviva called for a higher basic pension rate and the scrapping of credits, and for flat-rate tax relief on pension contributions.
Category: Axa Insurance News, Insurance News
Visited 1297 times, 3 so far today
Comments (0)
Trackback URL | Comments RSS Feed
There are no comments yet. Why not be the first to speak your mind.