Small increase in expected retirement living standards

Complex situation for different age groups

Martin Richmond
clock • 2 min read

The Aon defined contributions (DC) pension tracker has released its Q1 2022 update, which it said suggested a better-than-expected end of 2021.

The tracker rose from 58.4 to 59.7 during the Q4 2021, which keeps it level with the number that was seen at the start of 2021. While this suggests the expected living standards in retirement provided by DC pensions will be higher than previously thought, the situation is a complex one for different age categories. For savers with the largest DC pots that have already been built up over time, specifically the model 40- and 50-year-old members, they saw the biggest increase in expected benefits, seeing an increase in £400 and £500 per annum respectively. Meanwhile, the youngest model s...

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