Pensions and Lifetime Savings Association (PLSA) research has shown that 77% of those it surveyed were unaware if their pension planning was on target with their eventual expectations – and did not know how to find out – extrapolating up to as many as 13 million people at risk of not saving enough simply because they don’t understand how much to save.
“We all know we need to save for retirement but few of us know how much we might need to live on or whether we are on track to hit that target,” said Graham Vidler of the PLSA.
The PLSA is calling for a set of national retirement income targets “offering savers clarity about the costs they will need to meet in later life, not to mention the amount of money that they will need to enjoy the lifestyle they desire.”
The research compares the UK to the apparently more robust Australian system and calls out some well-known pressures on the UK pension system, such as rising care costs, increased longevity and escalating housing debt putting pressure on savings. Of those who took part in the research, only 23% knew how much they would need to save for retirement. 77% stated that they did not, and of the 23% who claimed to know how much they would need, only 16% could provide an exact value.
We acknowledge this research and can say it matches with our own anecdotal experiences – many people are surprised to find out they’re not as on-track for sufficient retirement saving as they thought they were. Therefore our advice would always be to seek proper advice from a professional financial advisor; they’ll be able to talk through the options and suggest ways of ensuring your retirement is everything you want it to be.