UK workers will have to save six times more money for their pensions if they want to live the lifestyle they expect in retirement, according to new figures.
Research by Barclays Financial Planning found that the average worker wanted an income of £18,300 a year.
Respondents said that they would like to retire at 59, but thought 63 was a more realistic target. This would mean the average person would have to save £315 more on top of the £54 they save at the moment.
To make matters worse, the survey found that almost half (48%) of the UK’s population is not paying anything at all into pension funds. Of those who are saving, two-thirds (63%) said they did not worry about retirement.
Simon Ingledew, director of Barclays Financial Planning, said that as a nation, we need to view planning as a necessity, not a luxury.
“More shocking still is that, when we’ve compared these results to research Barclays carried out 10 years ago, little has changed in a decade,” he said. “People continue to have high expectations around retirement, but contributions remain woefully inadequate and mass inertia persists.
“Financial education is very important, particularly when we’re seeing just over a quarter (28%) of people reviewing their pension on a regular basis,” Ingledew said. “With putting money aside for future retirement now competing with money for foreign holidays and nights out, it is easy to see how it seems less appealing.”
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