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How much to save for retirement?

Enable’s IFAs of Bishop’s Stortford are often asked how much is needed to save for retirement. Of course, it all depends on how much you would like to live on. But a recent research paper suggests that the cash required to fund anything more than a hand to mouth existence, on top of your state pension now stands at more than a quarter of a million pounds.

The insurer Royal London has released a new research designed to shock people out of complacency when saving for retirement. Their figure is based on matching the average working income and takes into account spending changes like reduced travel costs.

The trouble is that despite the biggest overhaul to pensions and retirements saving in recent history people are just not saving enough. Recent research from LV= suggests that the average retirement pot held by 45-54-year-olds is just £71,340. Women have saved an average of only £56,000 by then compared with £112,000 for men.

The workplace pension scheme has improved the situation with around half the adults in the UK now thought to be saving enough to compare their pre- and post-retirement life. “This is a great start, but the government needs to act quickly to nudge people up to more realistic savings levels,” says Helen Morrissey, personal finance specialist for Royal London.

Many of these ‘millions’ will be millennials whose other financial circumstances are already a step behind their older peers.  “We can no longer assume that we will be mortgage-free homeowners in retirement.  For those unable to get on the property ladder during their working life, a large private rental bill needs to be factored into retirement planning.”
For so many reasons it is important not to be complacent about saving for your retirement. Enable’s IFAs in Bishop’s Stortford can help you look at your options.

Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.


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