Pension Myths 4 of 5 – I Don’t Need A Private Pension

Retirees at the final British Lions test in Australia
Three British Lions supporters enjoying their retirement with a trip out to Australia to see the victorious final test match.

A report in The Guardian last year highlighted the growing issue of people retiring without a private pension. Presently, one in seven people retires without a private pension with women more than three times more likely to have no retirement savings.

So if a retiree had to live on just the pension from the state, what would that mean? It is possible to check your eligibility and the amount of pension you potential will receive by going on the website. This states that the new full State Pension will be no less than £148.50 per week with the actual amount being set in autumn 2015.

To become eligible for a full State Pension you need to have a minimum of 30 years worth of National Income Contributions (NICs), although you can also build up national insurance credits if you are a full time carer, or at home looking after children under the age of 16.

Retirement means being able to enjoy life after many years of working. However, for many people without a private pension it could mean trying to survive on £148.50 per week. A report in This Is Money in November 2009 highlighted how difficult it was to live off the State Pension alone and the situation has further deteriorated since that report.

Contributing to a private pension scheme, irrespective of how small the contribution may be, is the only way of ensuring that your time in retirement can be enjoyed, as it should be, and not be a financial struggle.

These myths about the Defined benefit pension scheme do not necessarily mean that it is best to move your pension, but it is worth discussing the issues with an independent pension adviser. Further information is available on the DPT Financial Solutions website and to speak with Dan Thomas please call 01443 229589 or by email on or via our website.

Reference articles:

The Guardian, Wednesday 9th April 2014 – One in seven people retires with no private pension

This Is Money, 15th November 2009 – Could you live on a State pension?