Overestimating Your Retirement Income
March 19th, 2010
Overestimating your pension savings
Are you banking on the state pension to support you in retirement?
About 18 % of people who intend to retire during 2010 admit they will be relying on the state pension and income from savings to fund their retirement, according to insurance firm Prudential.
Nearly a 3rd of people who are about to retire either do not know how much they will receive from the Government Pension or overestimate how much they will obtain.
But the latest information from the ONS demonstrate that the normal expenditure for a family headed by someone aged between 65 and 74 is £321 a week.
The research found that across all individual who are planning to retire this year, the state pension will make for an average of 34 per cent of their income. Occupational pension schemes will make up 36 % of the average individuals retirement income, with 11 % coming from alternative savings and investments and 9 percent contributed by personal pensions.
The State has admitted that it cannot adequately provide pensions at a satisfactory level in the future. It is up to each person to ascertain they have enough preparation for retirement.
Consilium Asset Management Limited are Financial Advisers based in Bristol, South Gloucestershire.
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