8 in 10 people ‘in the dark’ about pension savings

Most pension savers are unsure if they are saving enough to afford the lifestyle they want in retirement, research from the Pensions and Lifetime Savings Association (PLSA) shows.

A survey of 1,500 UK adults found that 80% have no idea if they're saving the right amount for retirement.

In addition, just over half (51%) wrongly think the government's minimum contribution level for auto-enrolment is the recommended pension savings level.

Auto-enrolment requires employers and employees to make a combined pension contribution of at least 5% of the employee's earnings in 2018/19, rising to 8% in April 2019.

While this helps provide a minimum amount of savings to live on, it is below the ideal amount for savers who want to maintain a comfortable lifestyle in retirement.

The PLSA has recommended introducing retirement income targets for savers in the UK, a measure which 74% of people say would make their retirement planning easier.

Nigel Peaple, director of policy and research at the PLSA, said:

"With future generations unlikely to have the same levels of property wealth, or final salary pensions, as current retirees do, it's vital more is done to ensure people can cover the costs of later life."

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The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.

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