A new study carried out by the Organisation for Economic Co-operation and Development (OECD) has suggested that the UK state pension is the ‘least generous’ of all the most advanced economies in the world.
The OECD suggested that the average retiree can expect to receive only 29% of what they earned from working. It also revealed that the level of poverty amongst older individuals in the UK is significantly high, due, in part, to the low level of the state pension.
However, if ‘voluntary’ pensions, such as workplace pensions, are taken into account, the average UK pensioner is likely to receive 62% of their working income – lower than the average for other OECD economies, which currently sits at 69%.
The Trades Union Congress (TUC) has urged the government to reform the way in which the UK pension system works.
Commenting on the OECD’s findings, Frances O’Grady, General Secretary of the TUC, said: ‘The OECD has confirmed what we have long suspected – the UK is bottom of the league for pension provision.
‘Working people in Britain face the biggest retirement cliff edge of any developed nation. We are letting down today’s workers if we can’t provide them with a decent retirement income.’
Responding to the findings, a spokesperson for the Department for Work and Pensions said: ‘We have taken decisive action to address our changing population through a new, generous state pension, retaining the triple lock and protecting the poorest through Pension Credit – reducing pensioner poverty close to historically low levels. But there’s always more to do.’