A recent report has revealed that on average, employees in the United Kingdom who rely solely on their workplace pension contributions will experience a £115,000 shortfall in retirement income.
Dubbed “The Retirement Shortfall Report”, the survey analysed regional data for life expectancy and salary of the 30 most populated towns and cities in Britain, before comparing it with retirement living standards and total pension contributions to work out the deficit that UK workers will suffer in retirement when depending on income just from their pension.
The recommended average annual retirement income for one person seeking to enjoy a moderate living standard outside of London is currently £23,300, and £28,300 for those living in the capital. Overall, the study found that the average UK worker will experience a £115,768 shortfall if they base their income in retirement on pension pots alone, prompting many people to reconsider how much they must save to have adequate provisions.
UK workers with concerns about having adequate provisions in later life often discuss their finances with experts in retirement planning in Chester, London, and other populous cities. Wealth managers help workers plan for their retirement but continue to assist after their employment ends by offering strategies and investments portfolios that can generate income.
At regional level, the UK capital faced the greatest shortfall in the income required to live a retirement with financial security. London workers who relied on just their pension contributions faced a £177,847 deficit.
