Many people approaching retirement don’t know how much it will cost, new research has revealed.
More than two thirds of people aged 50 to 64 have no idea how much they’ll need for their retirement.
The research, from think tank the Social Market Foundation (SMF), also shows the typical person in this age group has pension savings that are 58 per cent short of what they need. This adds up to a savings gap of £132bn across the country each year for those reaching retirement age.
The SMF said that ‘gaps in knowledge and understanding of pensions and savings leave many people at risk of making inadequate preparation for retirement.’
At LPPA, we believe it’s important to give pension members all the information they need to prepare for retirement. Visit our Getting ready for retirement page for more information. Our Life is for Living report also reveals what retirement means to thousands of members and the benefits of planning ahead.