The state pension offered in the UK has been identified as one of the lowest in Europe by the International Longevity Centre (ILC). The UK was measured against other European countries, with Greece coming out on top, where pensioners are “receiving almost 100% of their previous working income from the state upon retirement.” Pensioners in Germany, France, Spain and Romania are also considerably better off than UK pensioners, who are at a greater risk of poverty in their retirement years than 19 other European countries.
The only nations to offer their citizens a poorer pension than the UK were Latvia, the Netherlands, Ireland, Denmark, Poland and Estonia. The average pension received in the EU is 50% of pre-retirement income, but UK pensioners receive only a third, making for unsettling statistics as the life expectancy in Britain continues to rise.
In similar news, a True Potential survey of 8000 people has revealed that if pensioners require, on average, £23,457 a year during their retirement, the state pension they’re given will only last five years. Approximately £10,500 would need to be put away annually to afford that standard of living, an unrealistic expectation for most Brits.
Both pieces of research highlight the need for savers to consider their alternative finance options and plan ahead. Emerging investment options, in particular Peer-to-peer lending and investment, are becoming increasingly popular, with the number of loans funded by the P2P sector set to exceed £1 billion this year. Offering investors bank-beating rates on their money and reducing the risk to their capital as much as possible with the implementation of provision funds, Peer-to-peer is becoming a favourable option for many who want to boost their retirement savings. Wellesley & Co. is the first of these platforms to lend its own money with each investment, diversifying the funds and reducing the risk of default further.
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