Save 12% of earnings, says Scottish Widows
14/09/2006
People in the UK should save at least 12 per cent of their earnings each year to ensure a comfortable retirement, it has been advised.
Saving this amount year in, year out between the ages of 30 and 65 will prepare individuals for retirement, according to Ian Naismith, head of pensions market development at Scottish Widows.
New research from the pensions firm suggests that the average individual wants a retirement fund of £29,479, with one person in 12 on course for this figure.
Additionally, this sum is 75 per cent higher than the current national pensioner income, Scottish Widows indicates.
Furthermore, the research highlights that 50 per cent of the nation do not have adequate pension savings.
"Our generally high expectations of what we will need in retirement and our collective failure to save adequately raise important questions around financial education," says Mr Naismith.
"The truth of the matter is quite simple – if you want to have a fairly comfortable retirement you should be saving at least 12 per cent of your earnings year in, year out from the age of 30 until retirement," he adds.
The Pensions Policy Institute suggested this week that the government's pension white paper proposals will help solve some, but not all, of the problems with the current system.
Saving this amount year in, year out between the ages of 30 and 65 will prepare individuals for retirement, according to Ian Naismith, head of pensions market development at Scottish Widows.
New research from the pensions firm suggests that the average individual wants a retirement fund of £29,479, with one person in 12 on course for this figure.
Additionally, this sum is 75 per cent higher than the current national pensioner income, Scottish Widows indicates.
Furthermore, the research highlights that 50 per cent of the nation do not have adequate pension savings.
"Our generally high expectations of what we will need in retirement and our collective failure to save adequately raise important questions around financial education," says Mr Naismith.
"The truth of the matter is quite simple – if you want to have a fairly comfortable retirement you should be saving at least 12 per cent of your earnings year in, year out from the age of 30 until retirement," he adds.
The Pensions Policy Institute suggested this week that the government's pension white paper proposals will help solve some, but not all, of the problems with the current system.
