A new report has found that the average saver faces a five-year gap between when they want to retire and when it actually happens.
The study by pension provider Standard Life identified a core working-age demographic that would ideally like to retire at 62, but who realistically won’t down tools until 67. If you are retirement planning in Cheshire, you may be wondering what explains the gap, and what can be done to narrow it.
There are different reasons for this gap. Inflationary pressures and increased housing costs have impacted people’s ability to set aside money for retirement. Of course, this will depend on your individual circumstances, and specifically the depth of your funds, pensions and other assets. There are significant disparities between renters and property owners. The gap is also subject to wide regional variations, which range from under four years in Greater London to 4.3 years in the North West, and 5.9 years in the North East.
The smallest gap was recorded amongst savers with self-invested personal pensions (Sipp). People in that category would prefer to retire at 61.8, but think 63.9 is actually feasible. This is a mere 2.1 years dividing a dream from reality. Much will depend on the type of pension planning, if any, you engage in ahead of retirement.
This is why it is strongly recommended you reach out to a financial planner to strategise a plan for maximising your pension savings. The more you are able to save, the earlier you can stop working.
