Retirement savers significantly overestimate investment returns, research finds

Figures from Avacade Future Solutions showed the average saver ideally wants to retire on a pot size of about £335,000, equating to an income of £20,000 a year, but was only saving enough to achieve about 10% of that. It said current average pots stand at just £33,000. For savers to achieve their desired retirement income their pension funds would have to return 30.15% a year, yet in reality the average performance is about 3.78%, it said. The research also showed almost a fifth of people are scared of running out of money in retirement, yet a large number plan to shift their pension ...