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Overestimating your pension income
Are you banking on the state pension to fund you in retirement?
Around 18 per cent of people who intend to retire during 2010 admit they will be banking on the state pension and income from investments to support their retirement, according to insurer Prudential.
About a 3rd of individuals who are due to retire either do not know how much they will receive from the state pension or overestimate how much they will get.
But the latest numbers from the ONS record that the normal spending for a household headed by someone aged between 65 and 74 is £321 a week.
The research found that across every people who are looking to retire this yr, the state pension will account for an average of 34 % of their income. Occupational pension schemes will make up 36 % of the average person’s retirement income, with 11 per cent coming from alternative assets and 9 per cent contributed by personal pensions.
The government has admitted that it cannot adequately provide pensions at an appropriate level in the future. It is up to each person to ensure they have enough preparation for retirement.
Consilium Asset Management Limited are Financial Advisers based in Bristol, South Gloucestershire.
