UK workers who put off starting retirement investing until their 35th birthdays risk spending the first 15% of their working day for the rest of their working lives just to build up a retirement income equal to two-thirds of current average income.
Insight Investment has also published figures suggesting women in the same position will have to work an additional 10 minutes in every working day to achieve the same objective.
Those who put off retirement savings until their 45th birthdays risk spending the first three working hours of every day earning for retirement – although women will have to work an extra 21 minutes.
The good news is men and women who start saving for retirement from age 20 only have to put in less than a hour’s work every day to achieve the current £16,432 figure estimated to be the two-thirds target.
Average hourly earnings according to ONS figures were £12.12 in its last year reported. This explains the averages achieved in the table below.
Amount male needs to invest per month**
Amount female needs to invest per month**
Gross earnings per hour (*median annual UK salary - £22,060)
Amount worker has to invest per working day
Time each day when they stop working for retirement
Male workers: 9.51am
Male workers: 10.03am
Male workers: 10.19am
Male workers: 10.42am
Male workers: 11.13am
Male workers: 12.01pm
Male workers: 1.15pm
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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