To retire comfortably it is suggested that every person needs savings of at least £300,000. Assuming entitlement to a full state pension of £168.60 per week, this can ensure a moderate retirement lifestyle.
The problem is that a recent study by SunLife Insurance Group showed that the average pension pot for those aged 50-59 is c£150,000. Only 50% of the suggested recommended amount. This means that for many thousands of people turning their thoughts towards retirement, the outlook may be gloomy. They may have to work longer than they expected or already have to start thinking about the concessions to their expected standard of living.
For people with c10 years left until retirement, we would encourage people to think about how they might be able to bridge the gap between what they have and what they need.
- Analyse all current expenditure, cut down on unnecessary expense to enable a greater proportion of monthly income to be allocated to saving.
- Take advantage of Government tax relief schemes by saving into a pension account. Basic rate tax payers will get 20% tax relief on pension contributions.
- Take professional advice on the right investment strategy for your age and particular circumstances.
Are aged between 50 and 60 and want a better understanding of your pension in retirement? Contact Mark Fryer at Fryer Glass on 01276 301103 or email [email protected]
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