Standard Life's new research* has revealed that almost two out of three people (63%) think they could not live on £140 a week in retirement, rising to 72% for the 55 and over's. Only 17% of the 55 and over's think they could live on £140 a week. The Government has recently proposed a single-tier flat-rate state pension worth around £140 a week, and are currently consulting on how this might be introduced in 2015 at the earliest.
John Lawson, head of pensions policy at Standard Life said: "The introduction of state pensions of £140 a week for all is to be welcomed. This makes it clear and easy for people to understand what they will receive from the government as a pension. However, people clearly recognise that £140 a week will not likely be enough to live on in retirement."
The research also found there were significant differences of opinion between age groups, with the young more likely to think £140 a week was OK, while those in the older age ranges having had a reality check at the cost of living.
John Lawson concluded with tips for improving overall financial health: "Set up a savings plan to put money away for your future needs. Pensions and are enough to meet the savings needs of 99% of the population. If you are saving for a retirement income, a pension is the most tax efficient home for your money.
"Investing in cash, whilst generally safe, often means that your savings don't even keep pace with inflation, so don't be afraid to take some risk, particularly if you are investing for the longer-term. Savings providers now offer personalised investment portfolios, such as Standard Life's MyFolio, that match the level of risk you are comfortable with."
The Standard Life MyFolio** funds are a family of funds carefully constructed to achieve growth whilst minimising risk.
Notes to editors:
*All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,057 adults in the UK. Fieldwork was undertaken between 23rd and 25th March 2011. The survey was carried out online.
**MyFolio can be accessed via both a Stocks and Shares ISA and the Active Money Personal Pension. MyFolio is a family of carefully constructed risk-based portfolios, managed by Standard Life Investments. A committee oversees the fund research process and includes independent experts from outside the Standard Life group.
About Standard Life:
Standard Life is a leading long term savings and investments company headquartered in Edinburgh and operating internationally. Established in 1825, Standard Life provides ISAs, life assurance, annuities, investment funds, investment bonds, tax efficiencies, pensions including self-invested personal pensions (SIPP) company pensions, stakeholder pensions and employer pensions, and investment management to over 6.5 million customers worldwide.
Senior Media Affairs Manager
Standard Life plc
30 St Mary Axe
44 (0)20 7872 4481
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