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10h ago

Fidelity Study Ranks UK State Pension Lowest in G7 at 22% Replacement

The findings highlight Britain’s reliance on private and workplace saving to fund retirement.

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Judith says that life as a pensioner is a struggle and she has to watch every penny - and lose out despite working hard all her life due to frozen income thresholds
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Overview

  • Fidelity International’s analysis of OECD data shows the UK state pension replaces about 22% of pre‑retirement income, the weakest level in the G7.
  • Italy’s system replaces roughly 76% and France’s up to about 58%, reflecting different pension formulas and higher mandatory contributions in those countries.
  • The full UK state pension is about £230.25 per week, rising to £241, totaling just over £12,500 a year for those who qualify for the maximum.
  • UK retirees typically receive state payments for around 20 years and enjoy about 12 healthy years in retirement, compared with nearly 27 years and around 16 healthy years in France and Japan.
  • The UK spends a smaller share of GDP on old‑age pensions than peers, with reported figures varying by outlet, and advisers urge boosting private and workplace contributions to close income gaps.