Flat-rate pension equates to £130k annuity purchase

The government's white paper on state pension reform means everyone retiring from April 2017 will get £144 per week, equivalent to an income of £7,488 a year. Prudential's analysis found a 65-year-old today would need a £130,000 fund to generate the same £144 a week, assuming they secured the highest possible single life annuity without a guarantee. Vince Smith-Hughes, retirement income expert at Prudential, said: "The flat-rate state pension reform will be the biggest overhaul of the system for decades and is a very valuable step forward. "Private pension savers need funds of up t...