Market Society

Overestimating Your Retirement Income

March 19th, 2010

Overestimating your pension savings
Are you banking on the state pension to fund you in retirement?
Around 18 per cent of individuals who intend to give up work during 2010 admit they will be banking on the state pension and income from investments to support their retirement, according to insurance company Prudential.
Virtually a third of people who are looking to retire either do not know how much they will receive from the Government Pension or overvalue how much they will receive.
But the actual numbers from the ONS (Office of National Statistics) record that the average outlay for a house headed by someone aged between 65 and 74 is £321 a week.
The research indicated that across every people who are planning to retire this year, the state pension will make for an average of 34 % of their income. Occupational pension schemes will make up 36 per cent of the average person’s retirement income, with 11 percent coming from alternative investments and savings and 9 per cent contributed by personal pensions.
The government has confirmed that it cannot adequately fund pensions at a satisfactory level in the future. It is up to every individual to guarantee they have enough preparation for retirement.
Consilium Asset Management Limited are Financial Advisers based in Bristol, South Gloucestershire.

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