UK Pensions System Considered ‘The Worst Among Developed Nations’
In Britain, you’re not in much luck if you depend on the government for your pensions. According to UBS report comparing pensions for retiring-age women in all major cities of the world, London ranks among the worst in the list.
The report looks into each country’s basic state pension and the mandatory employer-provided pension. UBS then calculated the proportion of average income earners’ pensions upon retirement. In London, women can only expect 41% of their current income. UBS noted the figures are close with Hong Kong’s figures.
One of the highest pensions for women is in Singapore, which provides 73% of their current income upon retirement. Next is Australia’s Sydney, which guarantees about 72% of a woman’s employment income. New York is at fifth place while Canada’s Toronto is only at ninth place.
Age UK’s research supplements UBS’ efforts after finding over eight million people from ages 40-64 facing huge retirement challenges once they hit the state pension age of 65.
UBS added that London women have to save 47% of her income monthly by the age of 50 to ensure they can retain their current lifestyles. The amount to save varies; if the woman had saved earlier, she needs to set aside about half of the figure.