One in five people who retire this year will be depending on their state pensions for their income, according to a new survey.
The study, by insurance company Prudential, states that around 20% about to give up working have no company or personal pension in place.
Vince Smith-Hughes, head of business development at Prudential, said: ‘A fifth of this year's retirees are completely reliant on the state pension to fund their life in retirement.
‘While state pension levels are due to rise to around £102 a week later this year, this still provides a relatively low level of income, even taking into account the means-tested Pension Credit or the suggested £140 flat rate, when compared to average salaries for workers in the UK.
‘A lack of understanding of the value of the state pension and Pension Credit means that many people planning to retire this year may have no firm idea of what their retirement income will be.’