Pension savers heading for cash shortfall
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.