18% of people have enough pension pots to retire “comfortably”
A survey conducted by Finder.com, a personal finance comparison site, shows that the average pension pot is £42,651.
If you only consider non-retirement people, the figure is lower as you save an average of £33,809.
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Experts recommend that those retiring at age 67 need to save at least £237,000 to retire comfortably. This means that the average person in the UK has only 18% of this amount.
20% of the population does not have private or workplace pensions, while 18% has workplace pensions, but no private pensions.
Zoe Stabler, investment writer for Personal Finance comparison site, said Finder.com: It is understandable that some Brits have reduced or suspended their payments to direct their money towards more direct priorities. ”
Stabler also focused on the profits of compound interest when earning money over a long period of time.
“But if you’ve had to do this, it’s important to consider replacing this money or at least starting to pay your pension again. The power of compound interest is dozens of times. If you can leave it for the year, it means that what you pay now can be a life-changing amount. For example, you’re paid £10,000 now, with a 5% interest rate per year. It’s worth £25,330 in 20 years, £41,259 in 30 years and £67,207 in 40 years,” Stabler said.
“Also, if you opt out of your workplace pension to save money during the pandemic, you should be careful to revive as quickly as possible. If you are contributing a 5% salary each month, your employer will be this In addition, you will be required to pay a minimum of 3%.
State pensions could rise up by up to 8% next year, according to forecasters.
