Pension: Expert gives advice on preparing for retirement
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Scrounging for pennies in retirement is not anyone’s goal, and while most are saving and investing for their old age, how do they know that they are putting in enough? Blacktower Financial Management Group shared how to tell whether one’s savings is on track for a comfortable retirement and what retirement savings look like across the country.
The study found that 65 percent of Britons are worried about their financial stability in retirement.
This is a valid worry as many work tirelessly for decades in the hopes of being able to relax and enjoy life once they start withdrawing their pension.
However, as the time to retire looms closer, the more anxious Brits get about whether they have saved enough during their life to survive in, never mind enjoy, retirement.
Blacktower Financial Management Group found that a comfortable retirement for Generation X, taking into account inflation, will cost around £330,330 or roughly £23,595 per year.
This indicates that those in Generation X, between the ages of 40 and 56, should have at the bare minimum around £133,000 stored away for their retirement to be on track for comfort.
Millennials in their early thirties should have around half of this in pension savings, around £70,000.
Even the younger millennials in their mid-twenties, who average with just a year of full-time work under their belt, need over £15,000 in savings to have a happy retirement.
However, this is where the disparity lies as the study found Britons under the age of 34 generally only have around £1,000 saved for retirement.
So, how much should one have saved right now to be on track for retirement?
Baby Boomers, aged 57-75, should have between £267,000 and £330,000.
Generation X needs between £259,000 and £133,000.
Millennials, or Generation Y, are born between 1981 and 1996, and should have a minimum of £15,000 and £125,000.
Finally, Gen Z, aged between nine and 24, are mostly not even thinking about retirement.
However, working members of this generation should look to have at least £7,000 in retirement savings.
This is all in stark contrast with what the actual saving rates are for each of these age groups with many people not on track to a comfortable retirement at all.
While some are worried that they aren’t putting enough into their pension pots, there is a startling amount of people across the nation with no retirement savings at all.
The study found that Liverpool has the largest percentage of residents who have nothing saved towards retirement at 32.5 percent.
Bristol and Cardiff are tied at a close second with 32.1 percent of residents not having any savings.
Alternatively, Edinburgh is the city with the most retirement savings, where 18.3 percent of its residents have saved at least £330,330 for their retirement.
London and Newcastle follow closely behind with 14.8 percent and 13.7 percent of respective residents reaching this milestone.
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