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The centenary
of the state pension is no cause for celebration, according to research
by Friends Provident which has shown that 87 per cent of people
feel the Government is failing to provide an adequate service.
The survey carried out by the firm also found that only an estimated
three per cent of the population believes the current state pension
is adequate to live on throughout retirement, and 69 per cent of
people, both retired and still working, estimate that they would
need £600 or more each month to maintain their standard of
living.
The current basic state pension of £90.70 leaves significant
shortfalls for those without supplementary pension plans, says Friends
Provident, and represents around 15 per cent of average earnings.
In comparison, the first state pension in 1908 – although
what sounds a measly five shillings per week – represented
about 25 per cent of average earnings.
The research also found that two out of three people have little
or no faith in the Government when it comes to pensions, echoing
findings by Friends Provident in June.
Jeremy Ward, head of pensions marketing at Friends Provident, said:
“The state pension has changed drastically in the last century,
yet it is an unsatisfactory means of financial support for many
people. It is important for people dissatisfied with the state pension
to take responsibility for their own future and make provision for
their retirement while they are still working.”
- Pensions Age
August 2008
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