The UK's state pension is the second worst in the developed world, with only Mexico giving OAPs a worse average salary replacement rate in retirement, a study has found.
Analysis from the Organisation for Economic Co-operation and Development (OECD) showed Mexican workers get 28.5% salary replacement in retirement, with UK workers coming a close second with 32.6% of salary replaced directly by state benefits.
Italy and France gave the highest salary replacement rates from state pensions.
However, the report added that while state benefits were among the lowest in the OECD the replacement rate including "well-established private pensions" are around the area's average.
It added: "The introduction of auto-enrolment should increase pension adequacy in the long-term."
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected