A new study by the pension provider AEGON suggests that the average earner with an income of £27,000 per annum will need to save £300,000 in to a pension in order to maintain their standard of living in to their retirement.
The figure assumes that pensioners will need around two thirds of the income they had before retirement. Assuming a full state pension of £691 per month, the average wage earner will still need to generate a further £809 a month from other sources. The AEGON commissioned study found that a 65 year old in good health would need £301,500 in their pension to provide a guaranteed income for life at this level.
Steven Cameron, pensions director at AEGON noted that it was hardly surprising that around 12 million people in the UK are not saving enough adding, “The earlier you take steps to put a bit more aside, the better, and a good New Year’s Resolution would be to ask your employer if they’d be prepared to match any increase you make with an increased employer contribution.”
It should be born in mind that AEGON’s figures assume a full state pension will also be paid, not everyone will be entitled to the full payment.
JTM Financial Services provides expert, professional pensions advice to companies and individuals. Contact us today to arrange a review of your or your firm’s pension arrangements today.