Friday 25 May Marks Moment When Average UK Worker Has Already Earned Equivalent of Annual State Pension
By Friday 25 May the average
The current full State Pension gives retirees an income from the government of
The comparison shows that after the first 101 working days of 2018, excluding Bank Holidays and weekends, the average
The analysis highlights the challenge indviduals would face in retirement, without other sources of income, to fund the remaining 220 days of the year until
In an indication of the level of reliance on the government in the future, Aviva's reseach has also found that nearly one in five (17%) working adults believe the State Pension will be their main source of retirement income. 6
Auto-enrolment bridging the gap - but not for the self-employed
For those employees saving into a workplace pension, auto-enrolment is helping to bridge some of the savings gap, with more than 9 million people having been introduced to pension saving since the government policy was rolled out in 2012.
In April, the total minimum contribution rose to 5% of earnings - with the minimum contribution increasing to 2% for employers and 3% for employees. The total will rise again to 8% in
However the situation differs for those who are self-employed with currently no auto-enrolment equivalent in place. Latest figures from the
"How many of us could survive until 31st December with the amount of money we have already earned this year - or live for a whole year on just
"The State Pension is a national treasure and the bedrock of many retirement plans. However, most of us will find that it isn't enough to meet all our financial needs in retirement.
"Auto-enrolment has helped the
"Saving more into a pension means having to make the rest of the monthly pay cheque stretch further, but a far tougher challenge will come when you're no longer earning and have a much bigger income drop to deal with.
"The State Pension can only replace the average worker's income for 101 working days a year. Thanks to employer contributions and tax relief, more money goes into your workplace pension each month than comes out of your salary, so we urge people to think of the future and play the long game by putting saving first."
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