More than half (64%) of workers aged 45 and over do not know how much they will need to save to afford a comfortable retirement, research by Aviva UK has found.
With the full new state pension currently valued at £168.80 per week, which adds up to a retirement income of £8,777.60 per year, it is important for workers to know how much they will need to personally save in order to supplement their state pension and enjoy a comfortable retirement.
Along with knowing how much they need to save, employees also need to know how much they have saved already, however Aviva UK’s research also found that 37% of employees have no idea of how much they have already saved for their pension. In addition to this, the research found that 26% do not know at what age they’ll be eligible for the state pension.
Lindsey Rix, managing director of savings and retirement at Aviva, said: “Millions of mid-life employees are flying blind, and fast, towards their retirement. At the same time, these employees are calling upon their employers for help.
“Without a clear picture of what they currently have saved or might need to save for a comfortable retirement, our findings show many UK employees are approaching retirement with their eyes closed – with no realistic idea of how near or far they are from their destination.
“As a first step, mid-life employees who are mystified by their pension savings should try to get a clear picture of what they have saved so far and how much of an income this can provide them with over the course of retirement. For some, this may be a pleasant surprise, while for others, it could be the wake-up call that’s needed to spur them to take action. People whose pensions are in need of a boost shouldn’t be disheartened, however, as it’s never too late to save.”
