Have you saved money for retirement?
22nd November 2011
New research suggests that the average pensioner is short by over £6,000 in order to live comfortably in retirement.
A number of financially unstable pensioners are £6,200 short of the figure required to live comfortably in later life, according to a survey produced by Prudential.
They suggest that the average amount needed to live comfortably in retirement is £22,000.
If we contrast this figure with the average income that pensioners receive, £15,800, something clearly doesn’t stack up.
Two out of five pensioners admitted to Prudential that living on their retirement income is harder than they had initially anticipated. The research found that pensioners who find it difficult to make ends meet have various ways of boosting their disposable income.
Almost a fifth of pensioners have continued to work part time and 12% have downsized their property in order to make extra cash. A further 6% have released equity from their homes to make money.
Despite the tough economic times, and the recent state pension reforms raising the retirement age by 6 years, 70% say they enjoy retirement.
One in four pensioners are keen to spend their money while they still can.
The research found that women are more likely than men to find it difficult to live on their retirement income. Across the UK, pensioners in London and the East Midlands find more difficult than most to make ends meet.
"Recent returns on property and equity investments have been uncertain and we therefore strongly encourage people who are currently saving for retirement to seek financial advice to ensure they have an appropriate range of savings in place,” said Vince Smith-Hughes, Head of Business Development at Prudential.
"As people are living longer and need to fund more years in retirement, it is increasingly important to seek advice from professionals and put by as much as possible, as early as possible."
If you are struggling to save for retirement, Over 50s Life Cover could provide you and your family with some much needed re-assurance in the event of your death.
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