Brits’ pension pots are thousands of pounds smaller because of 14 years of sluggish growth under the Tories, Labour have said.
New analysis shows average pension pots are £6,300 smaller than they would have been had wages grown at the rate they did under the last Labour Government. Research by the House of Commons Library, commissioned by Labour, found a worker on average earnings could have expected to amass a £70,600 pension pot since 2010.
However, if wages had grown at the rate they did under the last Labour Government, the same worker would have built up a £76,900 pension pot over the same period.
Average earnings over the last year stood at £29,700. But if wages had kept growing after 2010 at the rate they did under Labour’s last stint in power, the average worker would take home £32,100.
Labour last night warned 14 years of Tory economic failure has had a devastating impact on family finances, including on mortgages, household bills, wages and pensions.
Alison McGovern, Labour’s acting Shadow Work and Pensions Secretary said: “Working people won’t need statistics to tell them they are worse off under the Tories – they see it every day in the shops and every month in their pay packets. But these damning new figures reveal that working people will feel the cost of Tory chaos for years to come, with their failure to make work pay wiping thousands off the average pension pot.”