22 September 2010
Research by Aviva and Deloitte shows a large gap in pension
benefits between the UK and Europe.
The gap, predicted to be £10,300 per person, which is
based on 31 million adults due to retire between 2011 and 2051.
The issue has a more substantial affect on people nearer to
retirement then those further away. The research shows that someone
who is 50 years of age will need to contribute £6,200 each
year compared to that of a 30 year old who contributes £1,800
per year due to the length of time to retirement.
Aviva's UK Life CEO, Toby Strauss said:
"While it has long been said that there is a pensions gap in the
UK and beyond, this new study actually puts a figure on the
shortfall. The findings are startling, with a UK shortfall of
£318 billion annually."
"We know from our research that many people in the UK are
planning to work later into life, but this will not solve the issue
fully. However, the problem is not without solution. By investing
from an early age, even a small amount can make a big difference in
closing the gap. The younger a person is when they start putting
money away, the more time they have to build up a sufficient fund
to provide the lifestyle they desire in retirement."
"Today's research should act as a wake-up call for individuals
and governments across Europe, particularly in the UK. Fortunately
it is not too late for people to take action. Aviva believes that
effective partnerships between the Government and the private
sector are crucial to solving this problem."
To see the full report click here
