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More than 12m face ‘pension poverty’ in Britain — and it could get worse, Scottish Widows warns

The Independent·Simon English·20 days ago
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A third of people face pension poverty and that could get worse if fuel inflation runs high and savers are forced to put less away for retirement, an influential industry report warns today, Scottish Widows ’ latest Retirement Report finds 31 per cent of adults – 12.2m people – face pension poverty using measures that compare likely retirement incomes against expenses. Those who cannot afford a “minimum retirement lifestyle” will struggle to cover basic needs such as food and fuel. That figure is actually down from 39 per cent in 2025, but fears about what could be around the corner are growing . Scottish Widows says that simply boosting auto-enrolment contributions would drive pension poverty down dramatically. Pensioner poverty is typically regarded as a household with annual income that is 60 per cent below the median, after housing costs. That is roughly £10,000 for an individual or £17,000 for a couple.…

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