According to the eight Scottish Widows annual report on UK pensions, it was found that less than half of the population is putting enough money aside for their retirement. Retirement savings are at the lowest they have ever been, with less and less people saving money. These are falling by 5% and even middle-income workers in company schemes need to find an extra £600 a month for a basic level of retirement.
Doing the maths
People need to find a solution to this problem fast. Assuming that the state pension is a flat rate £140 a week, as proposed by Iain Duncan Smith, this will give pensioners £7,280 a year. Consequently a £20,000 income a year would need a private pension of £12,720. This has put many people into panic mode. The fact that we live longer means many of us no longer qualify for pensions at the age of 60 or 65 years old. This puts the question on our minds: ‘how can we achieve these savings?’ [Read more…]