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More people
in the UK are continuing to save for retirement after reaching State
Pension Age, says Watson Wyatt’s analysis of new Government
statistics.
The Family Resources Survey, published 10 June by the Department
for Work & Pensions (DWP), shows that among male employees aged
65 or more, the proportion saving in a pension rose from six per
cent in 2005/06 to 21 per cent in 2006/07. Among female employees
aged 60 to 64, this proportion rose from 35 per cent to 44 per cent
and in females aged 65 or more, the proportion saving in a pension
rose from five per cent to 15 per cent.
However, the DWP released Pensioners’ Income Series shows
that the median occupational pension income received by recently
retired pensioners has fallen in real terms for the second year
running after peaking in 2004/05.
Paul Macro, a senior consultant at Watson Wyatt, said: “Improved
life expectancy means people have to choose between retiring later
and retiring with less.
“Employees are continuing to pay money into pensions at ages
more usually associated with drawing money out. Employers have responded
to age discrimination rules by giving older workers more opportunity
to benefit from company pension schemes and it looks like many have
jumped at the opportunity,” he added.
The Households Below Average Income (HBAI) figures released on 11
June by the Office for National Statistics show that on average;
around 822 pensioners are forced into poverty in a twelve month
period.
Mervyn Kohler, special adviser for Help the Aged, said: “The
Government should be mortified by the latest rise in pensioner poverty
- in a twelve month period, an additional 300,000 pensioners have
been forced into poverty.
“When older people live on a fixed income it is virtually
impossible for them to pull themselves out of poverty. Pensioners
often have to cut back on essential household items, just to survive.
This is a disgrace,” he added.
“The Government must take responsibility for the inequality
so many older people face. Instead, each year the Treasury sits
on more than £5 billion of unclaimed benefits which should
go to older people.”
- Pensions
Age June 2008
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