13 million Britons face retirement without a pension |
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Mon, 18 Apr 2005 01:00
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A most likely issue for pre-election clashes is the alarming rise in the number of Britons who have made no provisions for their retirement. A recent report by the Department of Work and Pensions said that 45 % of employed adults and 60% of self-employed had done nothing to ensure comfortable sustenance during their retirement years.
The figures are cause for concern because they show an increase from the 40% reported in 1998/99. The rise indicates an addition of 2.1 million people who face an uncertain future after they retire. It is estimated that 13 million people will now have to work longer and scrimp in order to manage enough savings on which they can comfortably survive during retirement.
| Then there were those who did make arrangements for their retirement years but now faced a bleak future after their pension schemes collapsed. There were 65,000 such employees.
Some sources believe the situation took a turn for the worse after the government changed the rules on valuing pension funds. Several financial scams and Equitable Life’s collapse contributed to the grim scenario. Chancellor Gordon Brown was also blamed for his decision to abolish dividend tax credits.
The situation threatens to assume the proportion of a national crisis. Most of these people will have no other source for sustenance except the minimal state pension. They would be putting a heavy strain on government benefits during their retirement years.
Political parties in the meanwhile have already included the issue on their manifesto. The Tories plan to take steps to boost savings.
The Pensions Commissions is expected to come up with recommendations for the government; these would be released only after the election.
Last week’s introduction of the Pension protection Fund has provided a safety net for members of occupational pension schemes. This scheme would ensure that pension provision for employees is not affected if their company fails.
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