Report Reveals Pensions Ignorance

Many people believe they will rely on their basic pension in retirement, but many do not know how much money it provides, according to a survey from the charity Help the Aged.

It discovered that one in five of 18 to 54 year olds believe that the state pension will be their major source of income, while five per cent think that they will rely on only the basic entitlement.

But despite millions of retired people relying on the state pension each week, 22 per cent do not know how much benefit the state gives to pensioners.

Micheal Lake, director general of Help the Aged, said: "This new research shows that pension provision is exceedingly poor among today's workforce.

"This can be put down to the sheer complexity of the present system. One in five thinks they will come to rely on basic state provision as one of their main sources of income."

Mr Lake called for the government to introduce radical pension reform to provide a "simple and fair pensions system" for all.

The charity's comments come after a leak suggested that the government raises the retirement age, whilst introducing a scheme to help individuals take their pension from employer to employer.