Two reports have recently been released showing that younger workers of today will be the ones facing poverty in retirement.
One of the reports claimed that the much talked about 'savings gap' has now increased from £27bn to around £66bn with people's savings falling short of the target by around £2,500 this year. The target is for people to save around 12.5% of their income each year.
The other report stated that typical workers now in their 20's would have to rely on already meagre state benefits in retirement after clocking up pensions of only 30% of salary by age 65. Could you live on 30% of your current salary?
Both reports showed women as worse off due to career breaks and generally lower wages. The fact that women also, on average, live longer than men means that an annuity to provide an income in retirement is more expensive for women.
The simple message is that people need to save more for retirement, especially as people are living longer and having a more active retirement.
Learn more about pensions in the Pensions Adviser.com.
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