Nearly a quarter (24%) of Brits have ‘no idea’ how much they’ve saved into their pension while almost half (42%) admit confusion over how much they need to save for retirement, according to new research from PensionBee.
In response to these challenges, pension savers are “calling for increased support from the government, with over 80% of Brits backing the creation of clear saving benchmarks to hit by set milestones to aid with their retirement planning.”
As Pension Awareness Week shines a spotlight on the state of UK retirement savings, new analysis highlights a sobering gap “between current pension savings and the amount estimated to be required for a moderate lifestyle in retirement.”
According to ONS data, the average pension pot “for a 30-year old saver in the UK is just £7,000, falling short of the estimated £44,000 that would be needed at this age to be on track for a moderate retirement living standard.”
Even by age 50, average pension savings stand at £75,100, still significantly “below the estimated £187,000 needed by this age to be on track for the same lifestyle.”
This shortfall is compounded by many Brits overspending in retirement, “with 1 in 5 over-55s reporting consistently spending more than expected.”
Becky O’Connor, Director of Public Affairs at PensionBee, commented:
“Millions of Brits are at risk of falling short of the retirement they hope for, simply because they don’t know how much they should be saving or when. As people live longer, the need for clear guidance on retirement savings has never been greater. Savers are crying out for more support. Both the pensions industry and the government must play their part in providing clarity to enable people to confidently plan for their later years.”
As covered, PensionBee claims that it is a leading online pension provider, “helping you transfer your old pensions into one new plan, that you can easily manage online.”
PensionBee says that it is on “a mission to make you pension confident by helping you take control of your pension savings and plan for a happy retirement.”
With PensionBee you can manage your pension from the palm of your hand: check your real-time balance, “see your projected retirement income, and set up contributions and withdrawals online.”
