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State pension 'falls well short of necessary amount'

State pension 'falls well short of necessary amount'
5th January 2009

Elderly people may not be well set-up for a comfortable retirement due to the amount they receive from the state pension, according to a major financial organisation.

The average amount a pensioner needs to relax with after retirement is £832 a month, Friends Provident has said, with the current state benefit of £90.70 a week falling well short of the required total, meaning it needs to double in size to be sufficient.

In a statement, the company continued: "Today, even though it is a universal benefit, paid at an earlier age and worth more in real terms than in 1909, many people feel it is an inadequate benefit, insufficient for their needs."

Despite this, most savers are shirking the idea of saving more of their earnings now in favour of retiring at an older age, cutting back on living costs in later life and downsizing their property.

Founded in 1832 as a private pensions company, Friends Provident originally aimed to alleviate the misfortune which many poor Quakers faced at the time.

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