PENSIONERS in the South West could be forced to work well into old age or be left to survive on just £15.94 per day, according to a new report.
The true scale of a growing pension crisis was revealed after a year-long research project into savings and debt habits in the UK which said millions could face poverty and state-dependency in retirement.
But despite the gloomy forecast of uncertain financial stability, retirement is still seen as a positive experience, a second report has found.
High inflation, austerity, low interest rates and access to payday loans has combined with poor financial education and complicated regulations to create a savings gap, financial services firm True Potential claimed.
The Tackling the Savings Gap report found that 32 percent of people said they need between £16,000 and £25,000 per year.
To achieve an annual income of that size, they would need a fund of £400,000, which requires an annual saving of £8,888 over a 45-year working life.
However, the data shows that savers in the South West today are only managing to put £2,578.44 each year towards their pension pot, building a fund of £116,030 which would only leave them with an annual income of £5,801 or a daily wage of just £15.94 in retirement.
This figure is just a penny below the UK average.
↧