The Pensions and Lifetime Savings Association (PLSA) has come up with a suggestion to help people keep their pension plans on track. It has called for savings targets to be put in place to help individuals save enough for a good pension for their retirement years.
According to their research1, 13 million people haven’t made sufficient pension provision and 78% of those aged between 18 and 64 don’t know how to go about finding out how much pension they will receive when they retire.
The PLSA is considering developing a new set of benchmarks that will help savers by providing target figures for them to aim for.
Retirement income targets are commonly used in Australia, and can help people become more informed about their pension by explaining how much they need to save to achieve different standards of living in retirement – such as minimum, modest and comfortable.
GETTING THE RIGHT ADVICE
Whilst most people know that they should save regularly throughout their working lives to accumulate enough to retire on, fewer people are aware of how much they might need to live on, or whether their current pension arrangements are on track to achieve their goals.
Research2 has shown that the average person in the UK thinks that they will need an income of £29,700 a year when they retire; what they are often not so clear about is that to achieve this level of income, they would need to have accumulated a pension pot of around £364,000 on top of a full state pension.
This is where getting advice can really help. We can provide valuable insight into how much your current pension savings are worth, what level of income you can expect to retire on, and what steps you can take to improve your standard of living in your later years.
The information within the article is purely for information purposes only and does not constitute individual advice
1Pensions and Lifetime Savings Association, Nov 2017
2One Family, Nov 2017