Overestimating your pension savings
Are you relying on the state pension to maintain your standard of living?
About 18 % of people who intend to give up work this year admit they will be banking on the state pension and income from investments to fund their retirement, according to insurance company Prudential.
Virtually a third of individuals who are due to retire either do not know how much they will receive from the Government Pension or overvalue how much they will obtain.
But the actual information from the ONS demonstrate that the average outlay for a household headed by someone aged between 65 and 74 is £321 a week.
The research found that across every people who are looking to retire this year, the state pension will account for an average of 34 percent of their income. Occupational pension schemes will make up 36 per cent of the average person’s retirement income, with 11 % coming from alternative investments and savings and 9 percent contributed by private pensions.
The State has announced that it cannot sufficiently fund pensions at a satisfactory level in the future. It is up to each person to ensure they have adequate provision for retirement.
Consilium Asset Management Limited are Financial Advisers based in Bristol, South Gloucestershire.
