Três quarters of Reino Unido workers are not on track to achieve a moderate income in retirement. A report released this Thursday indicates that only 23% will reach the level considered moderate in the country. The increase in living costs in recent years has raised the necessary bar.
The document prepared by Pensions UK details the annual amounts required for different standards of living after retirement at Reino Unido. Para a single person, the moderate demands £32,700 per year. Para a couple, the total rises to £45,400. Esses numbers already reflect the impact of recent inflation on items such as food and leisure.
Padrões retirement income varies between minimal, moderate and comfortable in Reino Unido
The report defines three main spending bands on Reino Unido. The minimum level costs around £13,900 for one person and £22,500 for two. Já the comfortable requires £45,400 for an individual and £62,700 for a couple.
Apenas 9% of Reino Unido workers are on track to reach the comfortable level. In contrast, 82% would reach at least the minimum. The difference between these groups reveals a large concentration in the basic range.
- A single person needs £13,900 a year for the minimum
- £32,700 is the value for the individual moderate standard
- £45,400 is moderate for a couple
- £62,700 is required for two people’s comfort
- Apenas 23% go to moderate and 9% to comfortable
Calculations come from Centre for Research in Social Policy, from Universidade to Loughborough. Eles are based on conversations with citizens about real spending on food, transportation, vacations and clothing. Values rose from the previous year, mainly due to higher prices for food and social activities.
Inflação pressures costs and widens distance to retirement target at Reino Unido
The higher cost of living has changed the scenario in Reino Unido. The estimates follow general inflation, but leave out housing expenses, which vary greatly from case to case. Therefore, Pensions UK recommends that each person adjust the numbers to their own reality.
Zoe Alexander, from the entity, stated that many people on Reino Unido expect a better standard than the minimum. Sem changes, they face a sudden drop in income when they stop working. The entity advocates that workers, employers and the government act together to increase contributions.
Annual Declarações helps with planning, but savings are still insufficient
Pension providers send annual statements with projections of future income. Mesmo thus, the report indicates that the majority of Reino Unido workers fall short. The British government last year revived Comissão from Pensões Turner, which had boosted automatic enrollment in retirement plans.
Dados from the tax authorities show that women accumulate around half the amount saved by men in pensions in Reino Unido. The difference starts to widen after the age of 28. Especialistas point out that the longer period of career interruptions contributes to this gap.
Mudanças in triple lock and the public system influence the future of retirements
The state pension system in Reino Unido has triple lock, which guarantees annual adjustments. The report does not detail future changes to this mechanism, but reinforces the need for private supplementation.
Rising housing and healthcare costs also put pressure on budgets. Muitos retirees need to adjust their habits so as not to exceed the minimum limit. Pensions UK suggests that discussions on the topic gain more space in the next rounds of public policies.
The document arrives at a time of debate on the sustainability of the retirement system at Reino Unido. As the population ages, the challenge of balancing contributions and benefits gains weight. Trabalhadores who plan for retirement in advance are more likely to adjust their savings.