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Pension Extenders Market Assessment

  • ID: 3789
  • January 2002
  • Region: United Kingdom
  • Key Note Ltd
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Retirement Funds TOO Small
For the purposes of this report, Key Note defines a pension extender as a way people devise to make their pension go further, including equity-release plans and Individual Savings Accounts (ISAs). The typical Briton now has a retirement fund of only £30,000. The Government's minimum income guarantee will be sorely needed by millions of pensioners, to improve their quality of life in retirement beyond the subsistence level of the basic state pension.

In fact, from 2003, the combination of state pension, minimum income guarantee, and pension credits for savings will mean that single pensioners will have at least £100 a week, and couples at least £154. In most cases, this is enough to cover basic living expenses. The knowledge that there is a safety net may lead adults with small and moderate incomes - there are nearly
13.4 million taxpayers with annual incomes under £15,000 - not to bother about extra pension saving at all, and to use pension extenders to augment state provision.

This possibility leads a growing number of voices to call for pension contributions to be made compulsory. They include around 60% of MPs, Virgin READ MORE >

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