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06 May 2014

90% Of UK Workers May Fail To Meet Retirement Income Target

New research carried out on behalf of pension provider Aegon UK has revealed a startling fact – 90% of British employees are not going to meet their retirement targets.

The Aegon UK Readiness report looked at 4,000 employees and their behaviour, awareness and finances to determine how ready they were for retirement. The report marked individuals out of a total of 100 and set 70 as the score indicating whether employees were on track to meet their retirement goal.

Results showed that just 7% of those surveyed achieved a score of 70 or above, while the average score stood at 52. An average UK worker hoped to get an annual retirement income of £35,000, but if current saving rates continue, they will have to live off about a third of this amount, or £12,000 a year.

Even more alarmingly, just 3% of respondents seem to be aware of possible ways to improve their retirement income. A general lack of awareness among employees is highlighted by the fact that more than half of those polled overestimated the actual value of the basic state pension, Aegon UK said.

The research also found that many people have not even tried to change their retirement plans, with 42% not even having checked on their retirement savings. And over the past six months, 48% of those aged between 55 and 64 have reviewed their plans, compared to just 22% of those within the 16 to 24 age group.

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