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Saving for Retirement

Do you know how much money you will need in retirement? Maybe you’ve never thought about it, but a new survey by the National Employment Savings Trust (NEST) has revealed that there is a significant gap between the amount of retirement income which people expect they will need and the amount which they are saving.
According to the research, on average 60% of people believe they will need retirement income of between 50% and 100% of current salary whereas the current average pension savings rate equates to just 29% of salary. The survey also revealed that two thirds of people are not confident that their retirement income will cover their needs, while 17% of people have not yet made the calculation.
Whilst auto enrolment is concentrating people’s minds on the need to save for retirement, it will have a diminishing effect for those who are already well on in their employment life. Commenting on the survey the CEO of NEST, Helen Dean, said “It’s worrying that many consumers seem to have unrealistic expectations about their retirement income. Many are simply not saving enough to match their expectations.” She also highlighted the fact that there is no one simple answer to ‘how much is enough’ with working income levels, ongoing housing costs, expectations and aspirations for later life all needing to be taken into account.
If you’re looking for advice on planning for your future, or if your situation has changed and you may therefore need to review your existing investment portfolio, contact Beckworth by using one of the links on our website.