The reliance on state pension was less in the south of England. In London and the South West (11 per cent and 16 per cent of people respectively) have no private pension, compared with 21 per cent of people in the East Midlands and 20 per cent in the North West.
One in five respondents also said they will end up below the poverty line – as calculated by the Joseph Rowntree Foundation – meaning they expect to retire on an income of less than £8254.
The research also suggested a significant gender gap in pension income.
A quarter of women will retire this year without a private pension, compared to just 8 per cent of men. A similar number of female retirees (21 per cent) will officially enter poverty, but the figure for men is also lower at 14 per cent.
ADVISER VIEW
Keith Iles, director of Harrow-based JHC Partnership, said: “I believe things will get far worse in the future because of political raids on our pensions and savings. We’re in a terrible state but who can afford to give advice to people who need it the most?”
INDUSTRY VIEW
Paul Yates, strategy and product development director for Avelo, said: “We need to see advice and products simplified to promote greater understanding, and encouragement from government and industry to help make providing for a pension a social norm, rather than a financial afterthought.”
Regional figures:
Region | 2013 retirees without private pension (%) | Retirement income made up by the state pension (%) | 2013 retirees retiring below the poverty line (%) |
East Midlands | 21% | 40% | 16% |
North West | 20% | 36% | 16% |
North East | 19% | 33% | 16% |
South West | 16% | 36% | 19% |
Wales | 16% | 42% | 25% |
Yorkshire and the Humber | 14% | 43% | 19% |
Eastern | 12% | 36% | 22% |
South East | 12% | 33% | 18% |
London | 11% | 32% | 14% |
Scotland | 10% | 34% | 16% |
West Midlands | 10% | 36% | 23% |
Northern Ireland: base size too low to include
