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Stock impact report

The amount workers must save to replace a means-tested state pension [Yahoo! Finance]

Aegon Ltd. New York Registry Shares (AEG) 
US:NYSE Investor Relations: aegon.com/investors
Company Research Source: Yahoo! Finance
Pensioners aged 66 qualify for the full state pension paying £11,502.40 a year if they have paid National Insurance (NI) contributions for 35 years. However, buying an annuity that guarantees this same rate of income for life would require a private pension pot worth a quarter of a million pounds, according to pension provider Aegon. To build a pot this big, a worker would need to save £228 per month into their pension over 45 years. This assumes annual 3pc earnings growth, 4.25pc investment growth and 2pc inflation. It comes amid concern that Labour may be tempted to means-test the benefit. This would mean wealthier retirees receiving a lower state pension or being denied it altogether. Steven Cameron, of Aegon, said the £250,000 figure was “staggering” and highlighted how many people were reliant on the monthly payments. He said: “The fact is that the state pension is worth a huge amount of money. For millions of people, the state pension is the bedrock of their retirement Show less Read more
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