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One in three worried about pensions shortfall

Many aren't saving enough for the future


Four white haired people

One in three people aren’t sure they’ll have enough to live on as pensioners, according a new poll by Which? Money.

The survey found that just 12 per cent are very confident they can look forward to a comfortable retirement.

Which? Money warns there is a gap of around £12,000 a year between the amount people want to live on in retirement and what the basic state pension will provide.

On average people expect they’ll need £312 a week after tax for a comfortable retirement. But the basic state pension is currently only £84.25 a week.

No savings

While some people will get other income – for example from a partner – most are likely to need to make other savings to bridge the gap.

Worryingly, more than a third of people surveyed aren’t currently saving for their retirement using pension schemes, savings and investments or property.

Which? Money Editor Martyn Hocking said: ‘It is worrying that one in three people aren’t sure they’ll have enough to live on when they get older.

‘There’s a huge difference between the amount of income people want to have in retirement and the amount they’ll get from the government.

‘The basic rule is that you should start saving for your retirement as early as you can – the longer you leave it, the more you will need to save.’

Expert information

Which? Money is launched on 1 February and provides impartial, expert information on money matters, to help people make the right choices. Which? Money is published monthly and is available by subscription only.  

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