A report by the Institute of Fiscal Studies (IFS) indicates that not as many people will be living in poverty in their old age, as first thought.
Researchers predict that the majority of the next generation of pensioners will meet the adequacy benchmark due to the amount.
The report was compiled by looking at data for people between the age of 50 and 65 years old. It was established that from the sample surveyed, 9.8 per cent would not have an adequate income when they retired.
The Pension Commission’s own analysis is in direct contrast with that of the Commission, which predicts that 38 - 43 per cent would be living in poverty whey they retired.
The difference between the two studies may be due to the fact that people’s wealth including property, were included in the IFS study.
The IFS summed up by saying that even though the outcome of their report was positive, people have a tendency to overestimate the amount they will receive from their private pension by 20 per cent.
Gemma Tetlow, research economist for the IFS said, "Despite this, we find that many individuals may not receive as much income from private pensions as they expect, unless they plan to change significantly their behaviour over the next few years."
Future pensioners may not be in the same position as those receiving pensions today
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Future pensioners may not be in the same position as those receiving pensions today
Tue, 18 Oct 2005
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