Half a million people face £10,000 annual pension shortfall

clock

Over half a million people in the UK could experience a shortfall of £10,000 in their pension for each year of retirement new research reveals.

According to Friends Provident the average Britain thinks they will need between £20,000 and £24,000 a year to live the lifestyle they want in retirement. But the amount they realistically anticipate receiving from their pension is around £10,000 to £12,000. For the 612,000 people due to retire this year according to the Department for Work and Pensions this may mean a total shortfall of £6bn for each year of their retirement, says Friends Provident. Friends Provident says the pension shortfall is causing people to work longer with 44% of those surveyed saying they ideally wanted to re...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Tyndall Partnerships head Sullivan on bespoke empowerment

Tyndall Partnerships head Sullivan on bespoke empowerment

‘No two IFAs invest in the same suite of models’

Isabel Baxter
clock 09 December 2024 • 4 min read
Smoothed funds set to be a 'bigger asset class for the advice market'

Smoothed funds set to be a 'bigger asset class for the advice market'

‘An attractive low-risk solution for retirees’

Isabel Baxter
clock 25 November 2024 • 3 min read
Advisers no longer see inflation as a major concern

Advisers no longer see inflation as a major concern

Funds offering a level of inflation protection were the last research, Square Mile finds

Isabel Baxter
clock 22 October 2024 • 4 min read