Most people are not saving as much for their retirement as they think.
The average expected retirement income is £409 per week, according to a new survey from finance company Friends Life.
Dyke Yaxley’s Senior Tax Planner, Tony Elliott said the average actual retirement income was almost £100 per week less, at £312.
“There is a general lack of awareness among working people about how much they need to be putting away to fund a comfortable retirement,” said Tony.
“In some cases, people are saving as much as they possibly can into a pension.
“But when you consider that, in some parts of the country, two thirds of people are still not investing in a pension at all, it is quite a worrying situation.
“Lack of awareness, a lack of planning, and soaring living costs are conspiring to leave people much poorer than they expect in retirement.
“It is vital that they take professional advice, and do some accurate calculations before it becomes too late to make a meaningful difference.”
“The average person does not know how much to save, but needs to find out.
Tony added: “You don’t want to be financially stressed when you’re older, if you can avoid it. Some people think saving £100 to £150 per month is ‘box ticked’ but this is not going to be enough for most people.”
“It is important to remember that pensions are one of the most valuable tax breaks savers have.
“Even in these low interest times, the average group pension has managed returns of nearly 10 per cent per cent over the last 30 years. That’s why they should be a top financial priority for anyone who has spare money to invest at the end of each month.”
Dyke Yaxley’s Tony Elliott