Are people saving enough for retirement?

30 September, 2015 | News

Whether or not you are saving enough for retirement comes down to what you would want in retirement. The most important part of saving for retirement is to ascertain what you would like in retirement and then calculate how much you should be saving.

It is however something many people either put off or chose to ignore. It is not the point to argue that this is right or wrong, in fact many people will be comfortable with just state pension in retirement. It is however important for people to manage their expectations in retirement so they have an idea of what to expect when they get there.

Royal London have recently published in depth research into retirement savings in the UK. The results of which help paint a picture of retirement funding and where many people may have not managed their retirement expectations well.

The study shows that 40% of 30-40 year olds are not saving for retirement and that they will rely on state pension in retirement. The study also shows that today;’s retires spend £1,084 per month on essentials alone (commodity/services, fuel & power, transport, housing and food). With new state pension proposed to be no less than £151.25 per week you can see that there is already quite a gap between what people may expect/need and what they may receive.

This study just highlights that many people may arrive at retirement with a bit of a shock and shows how important it is to look at what you can expect and would like in retirement and see how and if any gap can be filled.

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