New research by life insurance and pensions company Aegon suggests that most Britons expect to live a far more lavish lifestyle in retirement than their pensions savings will allow.
The report, a survey of over 4,000 British workers (the third in a series of surveys conducted over the last 12 months) discovered that the average Briton expects to retire at age 63, with an annual income of £42,000. In reality, the average savings within the sample group were expected to yield a retirement income of just £11,400 - less than half the UK average wage of £26,500.
Despite comprehensive changes to the pension system in recent months, and the expansion of auto-enrollment, most British workers were unaware of a number of key relevant facts concerning the performance of their savings, the level of state pension payments they would be entitled to, and how best to maximise their retirement income.
Using Aegon’s “Readiness Score” (which combines information on current savings, read more »