Less than half of us in the UK are saving enough to meet expectations for income later in life, according to data produced by Scottish Widows. Independent Financial Advisors like those at Enable can help you look at your overall financial situation and decide what you can do to prepare for a good retirement.
UK pension savers are putting less into their pension than ever before, with fewer than half saving enough to meet their income expectations. According to the Scottish Widows report, only 46 per cent of savers are putting enough away for when they retire.
The drop in savings spans all age groups. Out of 5,200 UK adults, 22 per cent have put nothing aside for later life. In contrast, people’s expectations for earnings in retirement have increased from wanting an average of £24,300 in 2011 to £24,500 this year. Such low savings figures suggest the average saver retiring at 65 would receive just over half the amount they feel they need.
The total pot for an average saver is around £150,000 in today’s terms, which would only provide an annual pension of £5,700. With the addition of the state pension this would generate a yearly income of approximately £13,000. which falls drastically short of the £24,500 annual income people are looking for To match expectations, the report suggests an average saver needs to save an additional £4,500 a year or £375 per month to plug fill the gap. At Enable our IFA’s can help you look at your pension provision.
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