The state pension should double to give retired people any hope of living comfortably, according to Friends Provident.
With large numbers of people completely reliant on the state to provide for them in their old age, Friends Provident says employers and the Government need to do more to deal with Britain's pensions crisis.
Research by the firm found £832 is the average monthly amount needed to live a comfortable retirement, before mortgage payments and rent are even considered. Currently, the basic state pension is just £393.
Despite the low amount paid by the state, 57% of those surveyed say they will rely on taxpayers to fund their retirement, and 56% want the Government to increase the value of the state pension.
Friends Provident also discovered many people are living for the here and now, with only one in ten prepared to cut back today in order to save for tomorrow.
The insurer says the Government should boost the state pension and is calling on employers to support them with increased pension contributions in company schemes.
Friends also wants to see a compulsory pension fund set up for every Briton from birth.
"When the state pension was first paid in 1909, those people who qualified for it would have been delighted at the extra support it gave them in their retirement," says Friends' head of corporate pensions marketing, Martin Palmer.
"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."
Contact: John Bakie, Tel: 020 7484 9805, e-mail: [email protected]IFAonline
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