Research carried out by pension provider Pension Bee has suggested that UK savers are ‘dangerously underestimating’ the minimum amount needed to retire.
A survey of 1,000 savers carried out by Pension Bee showed that 23% were unsure of the total pension pot size needed to achieve the retirement income they desire.
Pension Bee said that, according to the Pensions and Lifetime Savings Association’s (PLSA) Retirement Living Standards, a pension pot of £150,000 would only fund an individual’s minimum retirement standard for ten years. Pension Bee suggested that working-age adults could be underestimating the true cost of retirement.
49% of those polled estimated that they would require a pension pot of around £250,000 or more. However, Pension Bee found that, generally, the survey showed that there was a lack of clear consensus in regard to desired annual income in retirement.
Becky O’Connor, Director of Public Affairs at Pension Bee, said: ‘It’s hard to plan for retirement without an idea of how much you might need, yet most Brits seem to be unaware of - or worse, dangerously underestimate - the true cost of retirement.
‘A good pension pot is one that can provide enough money for the duration of retirement. As this exact amount will vary based on individual circumstances, pension calculators can be a helpful tool in setting financial goals and adjusting behaviours to achieve them.’
12/06/2024
View all >
08/10/2025
MTD for ITSA exemption applications
HMRC has opened up a service for landlords and self-employed to apply for exemption from Making Tax Digital (MTD) for Income Tax phase one.
READ MORE
HMRC to resume taking tax from accounts
HMRC has resumed its programme allowing direct recovery of money from debtors’ bank accounts.
Long-term sickness blighting UK economy
The UK must tackle its status as the sick man of the G7 if it wants to grow the economy, warns the British Chambers of Commerce (BCC).
Sign up to keep in touch to receive our latest news and industry updates.
* *
Yes, I would like to receive email updates providing me with the latest finance news, advice guides and details of future events.