Need for early pension advice
What should be the minimum amount people would need as an annual income to fund a comfortable retirement?
The amount varies depending on the life style one is used to
Recent research by the National Employer’s Savings Trust (NEST) identified an amount of £15,000.
At today’s rates (and in today’s dominated annuity market) you would need to accumulate a pension fund of around £260,000 to achieve that level of income; Association of British Insurers (ABI) figures suggest the average pot currently is just £36,800, which would provide an annual income of £2,000 at today’s rates.
The issue is that, while most people recognise there is a problem, very few have any real grasp of the sheer size of the numbers involved in the shortfall.
If we can push all people to get advice early enough to realise how much they need to do before they retire, that has to be the ideal.
Need for early pension advice
What should be the minimum amount people would need as an annual income to fund a comfortable retirement?
The amount varies depending on the life style one is used to
Recent research by the National Employer’s Savings Trust (NEST) identified an amount of £15,000.
At today’s rates (and in today’s dominated annuity market) you would need to accumulate a pension fund of around £260,000 to achieve that level of income; Association of British Insurers (ABI) figures suggest the average pot currently is just £36,800, which would provide an annual income of £2,000 at today’s rates.
The issue is that, while most people recognise there is a problem, very few have any real grasp of the sheer size of the numbers involved in the shortfall.
If we can push all people to get advice early enough to realise how much they need to do before they retire, that has to be the ideal.
