A third of workers have no pension
A new survey by Prudential has found that one in three workers in UK firms will be relying solely on the state pension and personal savings when they retire.
The survey, of 1,600 adults, also found that women are less likely to save for retirement than men. Vince Smith-Hughes, head of business development at Prudential, warned that as well as the sharp drop in income they face on retirement, they will also miss out on 'significant' tax relief during the course of their working lives.
Mr Smith-Hughes said: 'Failing to save into a pension means not only having to rely solely on the state pension in retirement, but also missing out on the ‘free money boosts’ which come with pensions, such as tax relief and employer contributions.
'Making regular pension contributions is a vital part of securing a comfortable retirement. Although saving for retirement may not be a priority for young people, the more money which is stashed away from an early age, the more likely that significant rewards will be reaped later in life.'
But for some it is already too late. A report in the summer by the Workplace Retirement Income Commission made the stark warning that a 'golden sunset is giving way to a bleak dawn.'