Over 50? Have you saved enough?

Millions of over 50’s planning to retire could be pushed into poverty or financial insecurity once they leave work, a situation that has been worsened by the pandemic. The latest industry report by the Pensions Policy Institute, suggests it is a retirement crisis with workers falling short of an adequate income when they retire.

90% of over 50’s will not be able to retire comfortably

The recent study, sponsored by the Centre for Ageing Better, warned that low state pension and increasing unemployment were the key causes that would leave a quarter of those approaching retirement age without enough to pay for an adequate standard of living.

During the pandemic a significant number of over 55’s were forced to take early retirement with redundancies hitting more older workers compared to other age groups throughout the crisis.

Those over 50 may also face additional demands on their incomes, paying off debts or supporting family members and also face barriers to re-entering the job market which will have stopped them contributing to their pensions earlier than planned.

How much do you need to live comfortably?

According to the Pensions and Lifetime Savings Association, a couple would need a pension income of £15,700 a year to live a “minimum level” lifestyle in retirement. Whereas a comfortable retirement would require a couple to achieve £47,500 a year. This amount would allow a retired couple to spend three weeks in Europe each year and spend £91 on their weekly food shop.

How much do you need to live comfortably. Source: Pensions and Lifetime Savings Association

How much do you need to live comfortably. Source: Pensions and Lifetime Savings Association

Calculating your pension pot

If you’re approaching retirement age or are thinking about your pension, you might be wondering what is a good pension pot to aim for. This will naturally depend on your own personal circumstances and what you picture your retirement to be.

Try our Wealth Calculator to help you picture your personal retirement>>

Getting pension advice

Taking time to discuss your retirement options with an adviser can seem daunting at first but it will enable you to gain control of your personal finances and provide valuable peace of mind. Simply being in the right pension for your goals can result in you having more money to retire and enable you to enjoy the things that matter to you. An adviser can also help you to put a plan in place for when the unexpected happens, its all about feeling comfortable, not just making ends meet.

Worried about managing your pension? Take control today, the sooner you start the sooner you’ll gain some clarity.

To speak to one of our Independent Financial Advisers request a free, no obligation meeting. Call 01244 347 583, info@innesreid.co.uk

This article is not personal advice.

Source – Pensions Policy Institute, Pensions and Lifetime Savings Association.

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