Some 61 per cent of Britons aged below 66 have “no concept” what their retirement revenue might be, and people who say they do are likely to overestimate it, in accordance with a survey.
The figures recommend many individuals have been ill-prepared for his or her retirement even earlier than the most recent surge in inflation put stress on family budgets, throwing many individuals’s monetary plans into disarray.
The outcomes come from the Nice British Retirement Survey revealed this week by Interactive Investor, based mostly on polling 10,000 individuals.
These able to estimate their annual retirement revenue gave a mean determine of £21,730, or 30 per cent greater than the precise determine which is £16,540.
“We . . . see retirement outcomes being routinely compromised by simply not understanding,” mentioned Richard Wilson, chief government. “Practically one in 4 (24 per cent) of the final inhabitants say they know nothing about pensions. In a world of pensions freedoms, and after 10 years of auto-enrolment, it is a clear coverage failure.”
Becky O’Connor, head of pensions and financial savings on the firm, mentioned: “The hazard is that the price of residing disaster leads us head on right into a full-blown retirement disaster. With financial savings more and more lower to the bone, it’s essential that the place doable individuals think twice about how they steadiness medium and longer-term financial savings objectives.”
The research exhibits that greater than half of individuals — 56 per cent — have curtailed financial savings, with 36 per cent chopping again and an extra 20 per cent stopping altogether. The disaster shouldn’t be sparing the better-off — 54 per cent of these on £60,000 a yr and extra have curtailed financial savings, virtually as many as these incomes below £30,000 (58 per cent).
Absolutely 32 per cent of these aged 55 have taken a lump sum out of their pension, says the survey, a call which may cut back their future retirement revenue. Of those, 33 per cent have put the cash right into a financial institution or financial savings account, the place the actual returns, after inflation, are damaging.
