Overestimating Your Retirement Income
Overestimating your retirement income
Are you banking on the state pension to fund you in retirement?
Around 18 % of people who are looking to give up work this year admit they will be banking on the state pension and income from savings to fund their retirement, according to insurance company Prudential.
Almost a third of individuals who are about to retire either do not know how much they will get from the Basic State Pension or overestimate how much they will obtain.
But the latest numbers from the Office for National Statistics indicate that the average spending for a house headed by someone aged between 65 and 74 is £321 a week.
The research found that across every individual who are looking to retire this year, the state pension will make for an average of 34 per cent of their income. Occupational pension schemes will make up 36 % of the average person’s retirement income, with 11 per cent coming from alternative assets and 9 percent contributed by private pensions.
The government has announced that it cannot adequately provide pensions at a satisfactory level in the future. It is up to every person to check they have enough preparation for retirement.
Consilium Asset Management Limited are Financial Advisers based in Bristol, South Gloucestershire.
