EU pension pot harder to fill than UK’s

Your article “Sizing up pension problems” (MW April 27) is one of many to have appeared in the press over the past few years which draws attention to a supposed lack of pension provision.

Leaving aside the risible supposition that pensions are designed to alleviate poverty in old age, there are two beneficiaries: the pensions industry, which may frighten people into buying expensive products, and the Government, which can reduce the state pension.

The figures you quote show a different story. Of the 40 million British adults over the age of 24, about 10 million are retired. Seven million of these rely solely on the state for their pension. Of the 30 million people of working age, 28 per cent have no pension provision other than the state pension.

Therefore, out of 10 million comparable workers, more than 7 million (72 per cent) have some pension provision other than the state pension.

This is three times higher than with current retirees, even given the demographic shift to an older population.

Whether the provision will suffice to provide a life of luxury is another matter, but the scary news is that British pension provision is more than twice as high as that of our European Union neighbours – what pot will they raid for their pensioners in 20 years time?

Dominic Moseley

Moseley Consulting

London SW1

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