One in five failing to save anything for retirement
ONE in five workers are not saving anything at all towards their retirement, a survey revealed today.
And nearly half of workers between 30 years-old and state pension age are failing to save adequately, according to the latest Scottish Widows index.
“We need a step-change to overcome this ingrained inertia and help people prepare for their retirement,” commented Scottish Widows’ Ian Naismith.
People want £24,300 a year in their retirement, on average, in order to live comfortably, and aim to retire just short of their 62nd birthdays.
While many respondents say they could save an extra £100 a month, few are turning their words into action, the survey shows.
With an extra £58 per month, savers could make up their savings shortfalls, Scottish Widows claimed.
“That is roughly the cost of a cup of coffee every day,” added Naismith.
People not expecting most of their retirement to be funded by a final salary pension are saving nine per cent of their incomes, on average.
Nearly one in ten (nine per cent) of respondents said they will opt out of the National Employment Savings Trust (NEST), if automatically enrolled.