Less than a fifth of those approaching a retirement reliant solely on the state pension are confident they can make ends meet, a survey shows.
Just 15 percent of the over-55s who have no personal pension savings are confident they can afford the basics of everyday life, according to Birmingham Midshires.
That compares to 55 percent among the 55-plus age group who have built up both a personal and state pension entitlement -- the highest of any working group, including the full-time employed.
Some 20 million people are not currently accruing rights in a private pension, according to the Pensions Policy Institute.
And with inflation running at 2.8 percent, state pension provision has failed to keep pace with the cost of living.
But, overall, Birmingham Midshires said its findings challenged the stereotype of impoverished pensioners.
It found that today's over-55s are living life to the full and are more likely than their younger counterparts to be able to afford luxuries.
A tenth of people from the older generation say they are able to indulge themselves with luxuries, compared to just 2 percent of 18-24-year-olds.
Jason Robinson, director of savings at Birmingham Midshires, said: "The over-55s are facing enormous change in their lives and many may be apprehensive about their retirement.
"It's great news that many people can look forward to financial and social freedom in later life.
"But, of course, the more money they have coming in from pensions and savings the more enjoyable retirement will be."
YouGov questioned 2,214 people for the survey.
dorramae
JUST CANNOT BELIEVE THAT OVER 55'S CAN AFFORD MORE LUXURIES THAN 18-24'S.
AND PARTICULARLY PENSIONERS IT IS SO HARD TO MEET BASIC
NEEDS SOMETIMES
Sandie Seward
All depends on what is meant by "luxuries" Dora. Some people still regard a car as a luxury. It isn't for me, and never has been.
To me, a luxury would be to really be able to afford to go on holiday when I want to, even for my phone to stop ringing with unwanted calls would be a luxury. (Who said that a phone is a luxury?)
Seriously though, people have very different ideas as to what constitutes a luxury and a nessessity. I also think that a persons age determines this as well. Not to mention money.
Compared with our parents or grandparents day, most of us now live in luxury. Central heating, constant hot water, carpets instead of lino, the list is endless.
I'd be interested to know just where a luxury stops being regarded as a luxury, and becomes a nessessity? Any suggestions?
