Debt: one in five 2010 retirees `have no pension`

27 January 2010

A recent survey has found that nearly one in five (18% of) people planning to retire this year do not have a pension fund and will live on the State Pension and savings.

Prudential, which carried out the research, also said that nearly a third (31%) either don`t know how much the state pension pays, or overestimate the weekly amount by £25 or more.

A debt expert at Think Money said that although some pensioners would get by on their regular savings, many of those without a pension fund would struggle and could be at a higher risk of debt problems.

"It`s widely accepted that the State Pension alone is not enough to give most pensioners a good standard of living, so it`s important that there is another source of funds, whether that`s a savings account or a personal pension - or both.

"Without that additional income, a financial emergency such as a boiler breaking down could easily force them into debt to cover their costs."

Tags: pension, retirement, State Pension, standard of living

Our initial advice on your best financial solution is free. Fees payable when continuing service is provided. Calls may be recorded for training and quality purposes.