By Francesca James
Prudential stated that in order for pensioners to be happy in their retirement, and avoid inflation rates they would need to double the amount that the state gives them in savings. There could be a £10,000 loss to pensioners on a fixed income over the next twenty years.
A bleak future for pensioners as the report by Prudential predicts that the value of their state pension will be worth little to nothing in 2031. The income is expected to plummet to just over £128 a week. The current state pension lies at £319, and people are struggling to live off that today. Living costs are high due to inflation and pensioners are really struggling.
Nikki Hart, online content manager for PensionCalculator.org said: "Pensioners should not have to worry about the cost of food and bills. The already vulnerable is becoming even more defenceless as they are living in poverty. Most pensioners have spent their lives working hard and it is very unfair for them to live in critical conditions."
More than 50 per cent of workers were oblivious to the auto-enrollment scheme starting next year. The auto-enrolment scheme is where workers automatically join a workplace pension. Out of 2000 people, just over 30 per cent of the younger generation in private and voluntary sectors were aware of the plans.
Nikki said: "The government should make everyone well aware of their plans to automatically enrol people into pensions. It leaves people distressed and unhappy to think that they do not have a choice about where their money is going. Workers should save from a younger age and get advice on what their options are.consider opening a stakeholder pension, or a private pension to get the best out of your returement. Start saving and live happy."