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16 million face pension poverty

The proportion of British workers facing a difficult retirement is rising, with the over 60 age group facing the biggest slide into pensioner poverty, says JP Morgan Fleming.

According to JP Morgan Fleming&#39s pension map of Britain report, a staggering 16 million workers representing 54 per cent of the UK workforce will retire on incomes of less than 40 per cent of their final salary and are likely to turn to state benefits for survival.

The report says this represents a surge of 16 per cent from 38 per cent in 1997.

The over 60 sector has seen the worst pension cover downturn, with 76 per cent of men and 80 per cent of women over 60 facing difficulty in retirement, up from 54 per cent and 61 per cent in 1997.

The report shows the average working adult is putting away just £693 a year in personal contributions and the population is missing out on up to £22bn in unused tax relief.

Northern Ireland and the East Midlands were the regions where people were most likely to be comfortable in retirement, with the North and the South-west faring worst.

JP Morgan Fleming investment trust client director Simon Crinage says: “Our figures show a significant level of individual apathy towards funding pensions. The low level of contribution is all the more frustrating given the attractive tax relief on pensions.”

Chartwell pensions adviser Gemma Bryer says: “Many of the over 60s have not been getting out of equities quick enough and are seeing a fall in the value of their funds.”

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