BRITAIN’S 45 to 54-year olds are facing a miserable retirement as a survey out today found they are the worst demographic for saving into their pensions.
The average worker in the age group expects a pension income of £28,655 – twice the actual average income for a single pensioner.
And the BlackRock study found that despite having high hopes for their retirement incomes, only half in the age group are actually saving.
Meanwhile the group believes they need an average of £294,000 saved up to bring in the income of £28,655, when in fact that annuity would cost another quarter of a million pounds – a pot of £549,000.
On average the 45 to 54-year-olds save 12p in every pound of incomes, well below the 18p put away by 18 to 24-year-olds and even less than those already at retirement age.
The group is also one of the most squeezed by bills, paying out 52p in the pound on bills each month, reducing the amount available for saving.
However, the financial problems are not all externally inflicted, with BlackRock noting the 45 to 54-year-olds are also apparently uninterested in their savings.
Although 40 per cent said funding a comfortable retirement is their top financial priority, just 20 per cent said that if they had another £100 per month they would save it.
And 37 per cent told the survey they would spend more time researching holidays compared to 14 per cent who would plan their retirement.
Rising prices will also act as a sting in the tail for the savers, the investment group said.
“Because headline inflation and interest rates are so low, people underestimate the impact that inflation can have on their savings,” said BlackRock’s Tony Stenning. “But actually the effect of inflation today is similar to back in the 1970s – the differential between the inflation and interest rate is much the same now as back then.”