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93% of Britons will fall short of Pension Targets

93% of Britons will fall short of Pension Targets

Old May 11th 2014, 9:51 am
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Post 93% of Britons will fall short of Pension Targets

A massive 93 per cent of the UK population are not on track to get the retirement they want and either need to boost their savings or limit their expectations, a study has found.

Pension provider Aegon found that only a minority of British savers have done enough to live their later years in comfort, while many are unrealistic about the income they want in retirement, with £35,000-a-year the average amount desired by the 4,000 people surveyed.

At the current rate they're saving, the average amount they can expect in retirement is around £12,000-a-year, including the state pension, meaning they will fall tens of thousands of pounds short of what they want.
While the majority of people are making some sort of provision for retirement, most aren't saving enough, while some are making no plans for retirement at all and intend to rely on the state pension.

The report states: 'The findings in the report are concerning. Not only is the UK population far from financially ready for retirement, but the awareness of what people need, and can achieve, is low. 'Throughout the report we’ve seen a low level of understanding and readiness, and a real lack
of engagement in retirement planning and finances. We’ve examined the differences by region, by gender, by profession and even by city, but again and again we see the same issues.'

Aegon managing director David Macmillan added: 'The problem is not restricted to particular professions, or regions, or demographics.
'This is a real issue which is affecting the whole UK population. People are just not close to matching expectation with reality. The results show that on their current plans, people will be £23,000 a year short of the income they want in retirement.'

The Retirement Readiness Report found that 89 per cent of have some form of savings in place but will ultimately fall short of their goal. Seven per cent are on track to meet their income targets, while four per cent will fall well short and have their 'head in the sand' about their retirement prospects.
Not only are people underestimating how much they will need from their own savings to see them through retirement, some are unaware of how much they can get from the state pension system.

More than half of people surveyed did not know the current level of the maximum basic state pension - which at the time of the survey was £110.15-a-week - although some may have been confused by the pending introduction of the new single-tier pension from April 2016 that will be worth more.

The study found that men are better prepared financially for retirement than women are, but that women are lower, and arguably more realistic, expectations about the income they will have

Read more: http://www.thisismoney.co.uk/money/p...#ixzz31OYAV1wC
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