Do you know how much you need to save into your pension for the retirement you want?
Millions of pension savers are underestimating how much they’ll need once they give up work. It’s a miscalculation that could lead to a retirement that doesn’t meet expectations. Even if retirement seems a long way off, a pension health check can make sure you’re on track. It’s far easier to bridge a pension gap if you recognise the shortfall early.
Two-thirds nearing retirement not saving enough
Analysis found that two-thirds of those aged 50 to 65 are under-saving for retirement.
If you reach retirement age and find there’s a shortfall in your pension, your options are limited. You may have to carry on working for longer or settle for a lifestyle that doesn’t match your aspirations.
In contrast, finding a pension gap when you’re middle-aged gives you an opportunity to plug the gap. Increasing regular contributions or adding a lump sum can get you back on track. It means you know what income you can expect in retirement and look forward to a secure lifestyle.
Mid-life pension health check
Despite the importance of understanding what kind of retirement your savings will afford, it’s a task many are putting off.
An Aviva survey found 53% of people in their mid-life have never calculated when they can afford to retire