THE DAILY MAIL: Millions of Britons are being condemned to poverty in old age by the worst state pension in the EU, a study shows.
The basic state pension of £87.30 a week is equivalent to just 17 per cent of the average wage, it found.
This figure rises to 30 per cent once pension payments related to earnings are taken into account.
But this is still only half the EU average of 60 per cent, the financial firm Aon Consulting said. Its study concluded: "The inadequacy of the state system is beyond question."
Charities including Help the Aged warn the problem has been made worse because the state pension has failed to keep pace with increases in the cost of essentials such as heating, water, and council tax.
A recent study found a quarter of pensioners are having to cut back on basics to survive. Until recently many British workers could rely on private pensions such as final salary schemes.
However, many of the most generous schemes have been replaced by deals requiring higher monthly payments in return for a smaller pension.
In addition, the study said a "spate" of banking scandals and crises had damaged confidence in the private pension system.
As a result, Britons are not investing in private pensions on the scale needed to make up for the state system's failings.
The average age of retirement in Britain - 62.6 - is also above the EU average of 61. Some 57 per cent of Britons aged between 55 and 64 are in paid employment. Britons have worst state pension in EU (more) By Sean Poulter
Mark Alexander
