Aegon believe that people could avoid the need to delay their retirement by doing as little as giving up a daily latte. The company say that with the government proposing that the state pension age rises from 65 to 67 for a 35 year old, and 68 for a 20 year old in its recent White Paper, people could avoid the later retirement age by saving £2.40 per day.
They have calculated that an extra £2.40 a day pension contribution could allow a 35-year-old earning £23,000 to reach a target pension of half their final salary at age 65 rather than 67. A 20-year-old could retire 3 years before their state pension age of 68 with an extra contribution of £1.68 per day.
Our view
Give up the coffee! Well not quite, get back to instant.