Ignorance or foolishness seem to pervade punters views on how much they need to save for retirement, according to a Sesame survey of expected pension funds required to live comfortably in retirement.
According to the survey of 300 IFAs in the Sesame network, 27% of people believe a retirement fund of up to £100,000 will provide a realistic pension pot, although this is the equivalent of living off an annual salary of just over £7,000.
The average ‘ideal’ pension pot is £187,000, providing annual income of £13,421 – or some 40% below the average national wage.
Some 16% of people believe a pot of between £100,000 to £250,000 would provide the income required – between about £7,000 to nearly £18,000 respectively.
Only five percent of people have a realistic idea of how much money is required to live comfortably, the research suggests, aiming for a pot of between £250,000 to £500,000 – the latter would provide up to about £35,000 in annual income.
Women are more likely to start thinking about pensions at a younger age than men, but overall the IFAs polled believe half of people have no idea of what they require from their pension pot in retirement.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Jonathan Boyd on 020 7484 9769 or email [email protected].IFAonline
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