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27 May 2015

Only 7% Of UK Workers Will Meet Their Retirement Goals

Pensions adviser Aegon has stated that the majority of UK workers are still failing to prepare for their retirement, with only 7% looking set to fulfil their retirement plans, The Actuary reports.

According to the organisation´s UK Readiness Report, which questioned a sample of 4,000 UK adults about their thoughts on retirement, the majority (62%) were unsure if they would be able to retire when they wished to.

A further 55% of those surveyed confessed to not keeping an eye on their pension funds, while some 40% were unaware of how much money they were putting into their pension pot.

More than half (59%) had no idea what their employer was contributing to their pension savings, while a similar amount (50%) were unaware of how much they had already saved into their company pension. Over a third (35%) did not know if they were eligible for auto-enrolment.

There was also a discrepancy between how much money people expected to live on during their retirement, and their actual savings. The average survey respondent wished to retire at the age of 63 and live on £42,000 each year – requiring a pension pot larger than £1 million. However, the new pension lifetime allowance is capped at £1 million for 2016.

Commenting on the findings, David Beattie – Ageon´s managing director – expressed his concern that workers were “still failing to prepare” for their retirement, calling the figures “deeply worrying.”

While the recent pension reforms have focused “primarily on giving those approaching retirement more control of their savings,” he explains, “it is time for a shift in emphasis from both government and industry.”

The focus now, he argues, should be on providing savers with the help and information that they need to prepare for their desired retirement.

Copyright © M2 Bespoke 2015

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