MORE than six million Britons over the age of 50 are on track to retire on less than the minimum wage.
A survey by finance firm LV= shows that 28% of over-50s in the UK have no pension or savings in place for retirement and plan to rely solely on the state pension – resulting in an increase of five million people relying on the benefit compared to current figures.
The basic state pension provides an annual income of £5587 – up to 51% (£5890) lower than that earned by someone working full-time on the minimum wage.
When asked if they could live on the equivalent of the minimum wage, 43% of those surveyed said they could not and a quarter (27%) said they would struggle.
Ray Chinn, head of pensions for LV=, said: "It is worrying that so many people are saving little or nothing for their retirement 'wages', instead expecting to fall back on the state pension.
"While working hard up to their retirement to bring home a decent wage, I'm sure many will be disappointed to retire with an income equivalent of less than the minimum wage.
"If more people reflected on their pension as a wage they might feel more inclined to plan ahead."
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