Brits don’t know how much they need to retire
Brits do not know how much they need to retire on, according to shocking new research from Abbey Savings. 53 per cent of UK adults do not know what they would need to save to enable them to do what they want in retirement.The research identified that women were less likely than men to know what they needed to retire, with 63 per cent versus 44 per cent for men. Remarkably 53 per cent of those aged over 65s – who have probably already retired – do not know how much they need to retire on.
The research showed that 16 per cent of people believed that they would be able to retire on £50k or less. This is despite the fact that were someone to buy an annuity for £50,000 – the maximum they would get from it is £3,568 per year - or £304 a month. This is below the annual GDP per capita in developing countries such as Algeria, Namibia and Botswana.
A further 12 per cent believe they could retire on a lump sum of £100,000 or less, giving them a potential £7329 a year. This would give them a lower income than the annual GDP per capita of Puerto Rico, Hungary and Barbados.
Reza Attar-Zadeh, Abbey's Head of Savings commented: “Clearly Brits are not saving enough for their retirement. This is of particular concern, with the move from final salary schemes to money purchase schemes, which means increasingly people need to take personal responsibility for saving for the future.
“Abbey is committed to offering innovative new products to get people to save for their future by building a balanced portfolio of assets. Our Super range of products encourages people to combine stock market linked investments with cash to invest for their retirement.”
Abbey’s Super range of savings accounts pioneers the use of combination products involving strong cash rates combined with guaranteed structured investment vehicles. The way these products are manufactured allows for highly attractive rates combined with capital guarantees.
Customers can apply for any of Abbey’s Super range by visiting abbey.com.