Will you avoid pensioner poverty?
A new report by the Policy Exchange has found that 11 million people may be in danger of retiring in poverty.
The report estimates that the average person's pension pot is £36,800 which (using annuity rates currently in force at the time) would give a yearly income of around £1,340 a year, or £111.67 a month.
The government's recommended retirement income is £16,200, and in order to reach this, a person earning the average wage of £27,000 a year would need a fund of £240,000, which would mean save six times more than they do at the moment. The figures assume that the person is also receiving the full single tier pension.
The report goes on to recommend that membership of a pension scheme should be made compulsory, and that the minimum contribution should be raised to 12% of salary.
If you are worried that you might not have enough money for a comfortable retirement, but find pensions offputting, our introduction to pension schemes is a good place to start. It is never too early to start saving, and the earlier you start, the more you will have in your pension pot.
Our mission is to make pensions accessible for everyone, so please contact us if you want to discuss any pension-related matter.