The UK is second only to Mexico in the meagreness of its state pension, new research from the Organisation for Economic Development and Co-operation (OECD) has found.
Brits receive on average only 32.6% of their working income from the state when they retire.
Compare that with the almost 91% received by those in Amsterdam, the most generous provider of state pension among the 34 OECD countries.
Mexicans are worst-off in the group of “developed” nations, receiving 28.5%.
However, lower-income Brits fare slightly better than the average person in this country, as they receive 55.8% of working income upon retirement, the OECD says.
The news comes as pensions provider Legal & General criticises the government for its planned 0.75% cap on pension management fees for being too high.
Legal & General says the cap will not reduce costs of pensions and could cost “legacy savers” £4.3bn in lost savings.
Today, the pensions industry hits the deadline for making submission to the Department of Work & Pensions about pensions charging.
Other pensions providers are against the management fees cap.
Follow me @LondonlovesBiz and @sophiehobson
NOW READ THIS:
The looming pensions crisis government is ignoring
Leave a Comment