It is understood that pension saving can be tricky in the current economy, as UK citizens balance the costs of living while attempting to save for the future. However, failing to equalise these two objectives can potentially leave Britons entirely unprepared for their retirement, as per the findings of a recent report.
The report has uncovered that retiring Britons will require thousands of pounds each year as an optimum sum once they stop working.
The ideal retirement figure of £22,500 per annum does not reflect a luxurious lifestyle, according to statistics, but a moderate standard of living. For the study, a moderate retirement was defined as one that provides both flexibility and financial security.
The study noted that pension pot size has a strong impact on an individual’s retirement expectations. People with a pension pot of less than £200,000 have an average “ideal” retirement income of around £20,000 each year. However, for savers with over £200,000 in their pot, their retirement income was recorded at £28,300.
UK savers looking for help with estate and retirement planning in Chester and Shropshire often look to wealth managers for guidance. Wealth management firms can accurately assess their client’s current financial situation, and after understanding their financial goals for the future, can help them put plans in place to achieve their objectives and enjoy a rewarding retirement.
Those looking for a higher standard of living are well advised to act early and put financial plans in place as quickly as possible to avoid disappointment.