Are we sleepwalking towards retirement?
New research from True Potential reveals pension pots may run dry after five years. The study has also found that Brits are only saving a quarter of the amount needed for retirement. True Potential have quoted £469,140, to be the ideal total for savers to draw down their pensions income over 20 years. Which means savers will have at least £23,457 per year as income from their pension to live a comfortable retirement.
However the True Potential survey revealed British savers are currently only saving £120,213 worth of a retirement fund, which would only support the ideal amount of £23,457 per year for just five years.
Over the past 12 months, True Potential have found that Brits have put aside £2,671.60, which over 45 years, may leave savers with an annual income of just £6,011 per year throughout their retirement. When asked only 4 per cent of those surveyed believed they could live comfortably on that amount of money.
David Harrison, True Potentials Managing partner added “Britain is sleepwalking towards an impoverished retirement and the reality for many in society today is that they will simply be unable to retire.”
Find out how much potential your pension pot could reach with the expertise of a financial adviser, read our Value of Advice research, highlighting the true benefits of advice.
You can also read more on the True Potential research here.