Urgent need for increase in pensions saving

The
average worker is facing a £51,000 shortfall in the amount they need to save
into a pension to have a comfortable retirement, according to new research.

Market
analyst Datamonitor said
people save an average of just £30,000 into both private and company pensions,
and it warned that they need to boost this by at least £51,000 to retire on
two-thirds of their final salary.

It
warned that a failure to put this extra money aside would cut someone’s
retirement income by around £4,000 a year.

It
added that if people did not make up the shortfall they would be living off
just £13,000 once they stopped working, taking into account the money they
would get from state pensions.

Oliver
Guirdham, life and pensions
analyst at Datamonitor,
said government initiatives aimed at boosting savings had so far largely failed.

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By Mike Berry