This damning report from BT money shows just how appalling our state pensions are. I don’t think a basic state pension would feed and house a cat, let alone a human.
According to Which magazine in 2013….
” Our latest Which? Money investigation looked into state pension systems in 15 different countries. Where do you think the UK sits in relation to its counterparts?
While the Swedes enjoy a maximum state pension of just over £25,000 a year, South Africans get a maximum of £1,044. And Britain’s current basic state pension of around £5,500 a year leaves it near the bottom of the league table.”
And this from BT Money
“UK state pension ‘one of the world’s lowest’, says OECD
A new study says British pensioners receive much less than their counterparts in many other parts of the developed world.
Pensioners in the UK receive much less state pension than they would in many other countries around the world, according to the latest figures from the Organisation for Economic Cooperation and Development (OECD).
At present the full basic state pension equates to just 16% of the nation’s average earnings. That is really low when compared to other countries – the OECD believes the average is 20.5%.
How our pension compares
British pensioners receive a state pension in line with what Swiss and Japanese retirees receive, but well below the pensions in New Zealand, Denmark and Ireland.
At the other end of the spectrum Chinese pensioners receive state handouts that equate to just 2% of the average wage.
Country and pension as a percentage of average wage:
New Zealand 40.1%
United States 17.3%
United Kingdom 16% – without pension credit top-up – the lowest of the low.
The UK also has one of the lowest average ‘replacement rate’ retirement incomes in the developed world.
This takes your net pension entitlement and divides it by your net pre-retirement earnings to show how effectively the pension system provides a retirement income to replace your earnings. The lower the figure is the greater the income drop pensioners face when they retire.
The only countries who are worse than us on this measure are Mexico and Chile.
British pensioners have an average replacement rate of 40% compared to an OECD average of over 60%.
“The analysis makes embarrassing reading for the politicians who have been responsible for the UK’s pensions over the past 25 years,” Tom McPhail, head of retirement policy at Hargreaves Lansdown.
This is an area where UKIP should be leading. It should be lambasting the current government at every opportunity for its failure, and every government beforehand. They have raided our pension pots paid for by our taxes, to squander money on vanity projects like HS2, and throw it into the black holes which are the EU and foreign aid, to name just 2 major drains on our resources.
With the Copeland by-election coming up, this should be added to the list of government failures which UKIP will endeavour to rectify. As we all know, the 45-50+ generation is far more likely to vote, and a lot of 45+ women will now have to wait until they are 67 to get what they were promised at 60.