Pen­sion savers head­ing for cash short­fall

Coventry Telegraph - - NEWS -

SEVEN in 10 young pen­sion savers risk head­ing for a cash short­fall in their re­tire­ment, a re­port warns.

Peo­ple aged 22 to 29 years old typ­i­cally ex­pect to need an an­nual in­come of just over £23,000 for a com­fort­able re­tire­ment, a sur­vey from Scot­tish Wid­ows found.

But based on the amounts peo­ple in this age group said they were sav­ing, the in­surer cal­cu­lated they could face an av­er­age short­fall of around £8,000 per year, as they could typ­i­cally ex­pect to end up with a yearly in­come of £15,200.

Scot­tish Wid­ows found that 70% of peo­ple sur­veyed in this age group were not sav­ing enough for their re­tire­ment.

It sug­gests that peo­ple should be putting away 12% of their in­come, in­clud­ing any em­ployer con­tri­bu­tions, to be sav­ing ad­e­quately.

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