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Overestimating your retirement income
Are you relying on the state pension to fund your retirement?
About 18 percent of people who are looking to give up work during 2010 admit they will be banking on the state pension and income from investments to fund their retirement, according to insurance firm Prudential.
Nearly a third of people who are looking to retire either do not know how much they will receive from the Government Pension or overestimate how much they will receive.
But the latest figures from the ONS demonstrate that the normal outlay for a family headed by someone aged between 65 and 74 is £321 a week.
The research indicated that across every people who are looking to retire this yr, the state pension will make for an average of 34 percent of their income. Occupational pension schemes will make up 36 % of the average person’s retirement income, with 11 per cent coming from alternative savings and investments and 9 % contributed by private pensions.
The government has confirmed that it cannot adequately provide pensions at an appropriate level in the future. It is up to each person to check they have adequate preparation for retirement.
Consilium Asset Management Limited are Financial Advisers based in Bristol, South Gloucestershire.