Pensions savings at record low despite rising retirement hopes
MOST Brits are failing to save enough for their retirement, even though their forecasts of how much they will need to be comfortable in old age has increased, according to a report published today.
Pensions savings hit a record low this year, Scottish Widows’ annual pensions survey revealed.
The average saver believes they would feel comfortable on a pension of £24,500 – and almost double the £13,000 the average saver retiring at 65 is set to receive.
Only 46 per cent of workers are saving enough for their retirement, down from 51 per cent this time last year, and 22 per cent have so far put away nothing for old age.
The average saver’s total pension pot stands at £150,000, which would provide an average annual pension of £5,700, on top of the £13,000 state pension. To meet their expectations, each saver will need to put away an average of £4,500 extra each year.
“These are alarming findings as UK pension provision has hit an all time low – people are saving less for old age, yet their expectations remain high, as the majority fail to recognise the harsh reality of retirement,” said Scottish Widows’ Ian Naismith.