The pension pot needed to avoid an uncomfortable retirement – or the ‘pension mountain’ – has grown in size in real terms by three quarters since 2002, from around £150,000 to £260,000, new research by Royal London has revealed.
Recently published figures by the Office for National Statistics (ONS) have led to concerns about how financially prepared many people are for retirement, despite a rise in the number of people contributing to a pension following the introduction of automatic enrolment.
New research has warned that many retirees could be at risk of running out of money during retirement because of a lack of advice and guidance on the recent pension freedoms.
Around 20% of British adults – amounting to more than 10 million people – say that a lack of retirement savings means they will have to keep working until they’re physically unable to, while one in 20 (6%) – another three million people – say they expect to work until…
It was good to read that saving is a priority for many adults in Britain, with around 46% of those surveyed saying they have a long-term savings goal. This rises to 63% among 25-34-year-olds.
Recent retirees are increasingly being called upon to provide financial support to their families, which is placing additional pressure on their retirement income.
It was concerning to hear that as many as one in eight people (12%) due to retire this year have made no provision for their retirement, including 10% who will either be totally or somewhat reliant on the State Pension.
New research has found that British millennials have grand plans in place for their retirement, but many are not saving enough to be able to make these plans a reality.
Pensions Freedom has brought with it a huge amount of publicity in this area. Lots of speculation around over 55s taking their pension pots out in one go and buying expensive supercars. All of this misses one clear problem at retirement and that is the sheer complication of this area…
