PENSIONS – THINKING AHEAD

A survey done recently by the consumer group, “Which”, has provided some useful information about thinking ahead to retirement by establishing what a minimum level of pension income provision would be in retirement and how much savings would be needed to achieve it. The survey showed that 59% of people who are not yet retired do not know how much pension they need to accumulate in order to live comfortably in retirement. By further survey they established that the average minimum level of pension income people estimated they would require in retirement at today’s values would be about £15,136 per annum. With the basic State Pension currently providing £110.15 per week, that would leave a shortfall of about £9,408 per annum - £784 per month. As a guideline the survey shows how much per month would be needed to make up this shortfall depending on the starting age. For a 25-year-old it is £214 per month, a 35-year-old £324 per month, and a 45-year-old £581 per month. Sadly the survey also showed that 46% of people who have not yet retired are making no effort to save for retirement.