Pensions Income Shortfall GBP8500 PA

MetLife Europe

According to MetLife Europe, it is reported that the average pensioner couple’s income from private pensions is £7,696, which is £8,505 short of the ideal pension, which the company calculated to be two-thirds of the average final salary.  

One in five people between the ages of 54 and 65 expect to have a monthly shortfall.  According to the Association of British Insurers, 9m people save nothing for a pension.  If pensioners want to enjoy a reasonable standard of living, then it is vital that they save more in their working years, according to Rosy Atal, head of Marketing for MetLife Europe.  

Our view

Many people do not plan or save for retirement, so it is almost guaranteed that they will suffer an income shortfall in retirement.  The key is to do whatever you can and do not think it is too small or to large.  If you spend more on your car than your pension then guess who has their priorities the wrong way around?

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