A quarter overestimate state pension pay outs

Jenna Towler
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A sixth of this year's retirees plan to depend entirely on the state pension but few know how much they will actually get, Prudential research has found.

The provider said while six in ten plan to depend on the state about a quarter of people polled overestimated how much they would get or simply did not know. Its Prudential Class of 2012 report also showed women are more than twice as likely as men to have no pension. Some 20% of women retiring this year will depend on the state pension compared to 8% of men. The average retiree is set to get 34% of their retirement income from the state, with weekly payments for single people set to increase to £107.45 from Friday, 6 April. Company pensions are the second highest source of income,...

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