Britain was named as having one of the "least generous pension schemes in the developed world" by the Organisation for Economic Co-operation and Development (OECD).
Full-time workers in the UK on the average wage of £22,000 a year can expect to receive less than half of their after-tax earnings.
Britain was ranked 26 out of 30 countries for post-tax pensions, for providing one of the lowest retirement incomes in the Western world for people on average incomes, the report revealed. It also stated that the British state pension system is relatively cheap to run.
In the most generous country, Luxembourg, en employee earning an average wage can expect to get a pension worth 110 per cent of his or her wage.
Other developed countries like Austria, Hungary, Italy, Spain and Turkey provide comparatively generous pensions, with rates above 75 per cent for workers on average incomes. The average across all OECD countries was 69 per cent of pre-retirement income.
The study said that average life expectancy would rise to 83.1 years for men and 86.6 years for women by 2040. Various studies and financial commentators stressed that UK workers will have to save more, be prepared to work longer or pay more taxes to ensure there is enough money for retirement.
The pensions system is one of the key issues in the general election, with the Conservatives accusing the Labour party of "negligence" over the state of British pensions.
Britain "least generous" with pensions
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Britain "least generous" with pensions
Tue, 03 May 2005
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