The research has identified that women were less likely than men to know what they needed to retire, with 63% versus 44% for men. Remarkably 53% of those aged over 65s-who have probably already retired – do not know how much they need to retire on.
The research has also showed that 16% of people believed that they would be able to retire on GBP50, 000 or less. This is despite the fact that were someone to buy an annuity for GBP50,000 – the maximum they would get from it is GBP3,568 per year – or GBP304 a month. It has also revealed that a further 12% believe they could retire on a lump sum of GBP100,000 or less, giving them a potential GBP7329 a year.
Reza Attar-Zadeh, Abbey’s head of savings, said: Clearly Brits are not saving enough for their retirement. This is of particular concern, with the move from final salary schemes to money purchase schemes, which means increasingly people need to take personal responsibility for saving for the future.
