Britain's state pension is among the least generous in the developed world.
Only people in Mexico receive less from their government on retirement, a study has found for the Organisation for Economic Co–operation and Development.
Currently, someone in the UK in a full–time job on average earnings throughout their working life can expect a state pension worth 32.6% of their working wage. This is well below the average in industrialised nations.
The average worker in Mexico will receive just 28.5%.
Elsewhere, a worker in Italy will get 70% of their working salary. Typical workers in Australia and France will receive more than half of their working wage in their state pension.
The British state pension system works in favour of the lowest paid, the OECD said. Low earners can expect 55.8% of their working income on retirement. While higher earners will receive less than a quarter of the working salary.
The OECD said it was only by paying into a private pension that British people can bring up their retirement income to match the average for rich nations.
But official figures indicated those in occupational pensions have dropped to 8.2 million, or 35%.
Last year, the Government introduced "automatic enrolment" into company pensions to get workers to save privately for retirement rather than relying on state provision. The OECD said that if people enrolled in these schemes saved 8% of their career earnings in a private pension, overall British pension incomes would match those of France or Australia.
The current maximum British basic state pension is £110.15 a week for those who have worked for 30 qualifying years, paying national insurance in each. The earnings related state second pension brings in an average of £124 extra a week for those who did not opt out.
The current system is to be replaced with a flatrate pension worth £144 a week for all.
