Thread by @MoneyTelegraph

❌A retirement crisis is set to hit over 5 million older workers.

Nine in 10 workers will not be able to afford a comfortable retirement - as they will fall short of an “adequate” income once they leave work.

~ Thread 🧵
telegraph.co.uk/pensions-retir…

🔺Millions of over-50s planning to retire could be pushed into poverty and financial insecurity - a situation that has been worsened by the pandemic.

🔺Over 90% of private sector workers will not be able to afford a comfortable retirement, according to Pensions Policy Institute

The report showed key factors included:
⬇️A low state pension
⬆️Increasing unemployment

A large number of over-55s were forced into early retirement during the pandemic.

The full state pension pays just 24% of the national average income

The Government’s “triple lock”, guarantees state pension rises by:
📌The highest of inflation
📌Wage growth
📌or 2.5%

This has been branded “worthless” as millions of pensioners struggle to cope.

The Government has been urged to build a new mechanism
telegraph.co.uk/pensions-retir…

Just 1/3 people can expect a “moderate” life in retirement, which is equivalent to £20,200 a year.

This would allow them to cover:
🍞Basics living cost
🏖️Go on holiday in Europe for two weeks a year
🍽️Eat out a few times a month

Future generations are equally at risk of falling short of an “adequate” income in retirement.

❌The minimum contributions made through auto-enrolment is insufficient

📑Pensions Policy Institute's spokesperson, said the “stark” figures showed how urgently those saving need an accessible and achievable target.

There had been no single standard of what an "adequate" income in retirement was and how much pension wealth that required, they said

“Action from the Government to pursue this agenda will be necessary soon, to help prevent future generations of older people experiencing poor retirement living standards”

Read more: telegraph.co.uk/pensions-retir…