Overestimating your retirement income
Are you banking on the state pension to fund you in retirement?
Around 18 % of people who intend to retire this year admit they will be banking on the state pension and income from savings to support their retirement, according to insurance firm Prudential.
Almost a 3rd of individuals who are due to retire either do not know how much they will receive from the Government or overestimate how much they will get.
But the actual information from the Office for National Statistics record that the normal expenditure for a household headed by someone aged between 65 and 74 is £321 a week.
The research found that across every individual who are considering retiring this yr, the state pension will make for an average of 34 per cent of their income. Occupational pension schemes will make up 36 percent of the average individuals retirement income, with 11 percent coming from other investments and 9 % contributed by private pensions.
The government has announced that it cannot sufficiently fund pensions at a satisfactory level in the future. It is up to each individual to determine they have enough preparation for retirement.
Consilium Asset Management Limited are Financial Advisers based in Bristol, South Gloucestershire.