Only seven per cent of the UK population is close to being ready for the retirement they want, according to a major new report.
Pensions and savings provider Aegon say, on average people will fall £23,000 per year short of their expected retirement income.
As well as this, 42 per cent have never checked the performance of their existing retirement savings.
Aside from a lack of surplus cash, I think the blunt truth is most of us simply don’t know where to start when it comes to saving for retirement. This is coupled with the fact that there’s a huge gap between what we want in retirement, compared with how much were prepared to save.
– Sue Hayward - Personal Finance and Consumer Expert
Sue Hayward’s Top Ten Tips:
New to pension saving? Work out how much you can afford to save each month.
Do something! Opening a cash ISA is a good start.
There’s no one size fits all way to save for retirement. Think what’s best for you, whether that’s property, shares or a company scheme.
Every penny counts. Pension contributions qualify for tax relief so £80 is worth £100 for basic rate taxpayers.
Keep track of how your investments are performing.
Get a pension update. If you’ve moved jobs, you may have small amounts stuck in different funds. The Pension Tracing Service can help with this.
Maximise your annual ISA allowance. From July you can pay in £15,000.
Don’t dip into retirement savings; the moneys there for a reason.
Property rental can provide a pension income but relying on downsizing for your nest egg could prove tricky if you can’t sell when you want to.
Find out your readiness score to see how prepared you are for retirement.