Half of UK workers are failing to save enough money for a comfortable retirement. The findings come as part of the annual pension report by Scottish Widows.
According to their research, nearly half of us (49%) are facing a difficult old age as we struggle to make sufficient savings. One in five people is failing to make any provision for their retirement at all.
‘This year’s report clearly illustrates the stark difficulty we face in helping people to recognise the urgent need to take personal responsibility for their future,’ says Ian Naismith, head of pensions market development for Scottish Widows. ‘We need a step-change to overcome this ingrained inertia and help people prepare for their retirement.’
The survey reports that, on average, people would like an annual retirement income of £24,300 in order to be comfortable at 70. (The average age at which most people would like to retire is 61 years and eight months.)
In 2009, before the recession, people estimated £27,900 as the ideal retirement income. Few people will reach even the lower figure unless savings rates rise.
‘Put simply, people need to save an extra £58 per month on average to prepare adequately for retirement and make up the shortfall we’re seeing currently,’ says Naismith. ‘That’s roughly the cost of a cup of coffee every day.’
Guess we’d better pass on the cappuccino this morning…