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UK in research has been kept state pension at the bottom of the pile compared to others g7 nation, with the British pensioners are receiving on average only 22 percent of their pre-retirement income state pension,
Data from wealth management firm Fidelity International shows that this is a poor situation when compared directly with Italy’s 76 per cent or France’s 58 per cent.
But research also shows that how retirement income is funded is how other services are paid for. pensioners And how retirement income is calculated for individuals in each of those countries means that direct comparisons are not always entirely clear.
“It’s important to be cautious when making direct analogies – each system has its own rules and funding mechanisms,” said Fidelity’s Private. finance Expert Mariana Hunt. “For example, in the UK, today’s state pensions are largely funded by National Insurance contributionsWhereas in Italy employees contribute about 9-11 percent of their salaries to social security, which also includes pensions and other benefits.
The difference is also reflected in the fact that in the UK the state pension is a set amount based on the number of years worked and so on, whereas in France, for example, the 25 highest-earning years of a person’s working life are used to give the average from which the retirement amount is derived – up to half of that figure, with minimum and maximum amounts set in line with other criteria.
Here in Britain, state pension It serves as a basic part of the income that it is expected that people can add extra to on a monthly basis. Wealth Through personal or workplace pensions, or other assets such as investments or property. Elsewhere, it may be the main or full amount. of retirement income,
Making workplace pensions an opt-out policy has succeeded in helping British people save extra for the future, yet it is estimated that many will lack the funds to maintain a comfortable lifestyle in retirement.
Additional recent data from Standard Life shows that due to finance pressures people believe they would ideally like to retire at least four years later than they would like, while more than half (53 percent) of respondents in one survey said they were worried they were not saving enough for retirement.
New research from Fidelity shows that the state pension age in the UK is lower than in Italy or the United States, although the average number of years expected for a person to receive a state pension – 19.8 – was significantly lower than in Canada, France, Italy or Japan.
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UK government spending on state pensions as a percentage of GDP is 4.7 per cent – the joint lowest, according to Fidelity data. g7In which Italy (12.8 percent) is the highest. Despite this, concerns remain about the state pension Due to significant increase since AprilHow much money was spent on this Will be made “completely inaccessible” Without increasing the pension age to 80 years.
Additionally, having an NHS means that the UK has a healthcare service – particularly a vital service for pensioners – that is almost completely free to use at the point of contact, unlike the US or Canada and even the European members of the G7.