According to Friends Provident, one fifth of people in Britain believe less that £50,000 in their pension would provide a good income in retirement. A quarter of those polled believed that they were well informed about financial matters, despite answers to questions proving otherwise. Their report found that consumers still thought that the best source of advice on pension was an independent financial adviser, with over half of those polled saying that they would consider doing this.
Almost 35% had no idea how much they could afford to invest in their pensions a month. Women seemed less well informed about financial matters than men. Nearly half of those questioned said that more immediate financial concerns, such as mortgages, loans, car loans and household bills stopped them investing in pensions.
Our view
Broadly speaking, if you have a pension fund worth £50,000 this will buy you an income of around £2,500 a year i.e. £200pm (before tax!).
If you want a pension of around £20,000 a year, you will need a pension fund of around £400,000.
Why not try out our calculators to see what you should really be saving and then book a Free Callback from us.