Last year research from the Department for Work and Pensions (DWP) found approximately two in five working age people are currently under saving for retirement.
Whilst money isn’t everything in retirement a sufficient level of income will largely determine what you can afford to do and how you choose to spend your time with your family and friends.
Insufficient money for the over 55s is the one of the main causes of retirement dissatisfaction.
This leads to two obvious questions - how much is enough? and how can you find out if you’re on track to have sufficient pension savings for your retirement goals?
What you plan to do in retirement is a good starting point then look at your last workplace pension plan annual statement.
Your Annual Statement shows you three things:
- How much money you already have in your pension plan
- How much money you could have on your 65th birthday (or the age at which you told the pension provider you plan to retire)
- What you could do to give yourself more money
The Pensions and Lifetime Savings Association (PLSA) publish their ‘Retirement Living Standards’ which gives an indication of the level of retirement income required for differing levels of affordability and comfort starting from ‘essential needs’ up to ‘comfortable retirement’.
https://www.retirementlivingstandards.org.uk/
As you know; your employer pays a contribution to your workplace pension scheme along with a contribution from the tax man and your own contributions.
Your employer may increase the amount they pay into your pension pot if you increase your contributions. Check the workplace pension to ensure you take advantage of this valuable benefit, but if you already receive the maximum employer contribution, and can afford to do so, consider paying a higher contribution yourself.