A drop in the number of UK pensioners facing poverty shows that putting money into a pension scheme pays off, according to one industry body.
Recently published data from the Office for National Statistics (ONS) revealed that the number of pensioners living in poverty reduced by 900,000 between 1998-99 and 2007-08.
The National Association of Pension Funds claimed this was evidence that paying into a pension scheme can ease the financial burden of retirement.
Joanne Segars, the organisation’s chief executive, said: "[The] figures give a clear message – saving into a workplace pension clearly improves the quality of life people can enjoy when they retire, helping them to live with security and dignity."
Despite the drop, the ONS figures revealed that two million pensioners still had to get by on just 60 per cent of the average household income.
This figure could act as a catalyst in encouraging people to seek additional ways of funding their retirement.
Those who are homeowners could receive a welcome financial boost by drawing cash from the value of their property through an equity release programme.
