As the Queen turns 90, Moneywise warns that it’s vital you plan for your retirement now as it’s unlikely you’ll still be working until 90 as our Monarch has done.
Research by BlackRock asset management reveals that the average Briton wants to retire at 64 years of age with an annual retirement income of £23,000, while 40% envisage a period of semi-retirement starting at age 59.
However, despite these aspirations, four in 10 people haven’t started to save for retirement, and half (49%) are not confident they will achieve their retirement goals.
Kate Smith, head of pensions at Aegon, also warns that few will be working when they are 90. She says: “The Queen, like many people in the UK, has continued to meet her duties well past the UK’s expected retirement age of 64, but few will expect to still be working when they’re 90.”
This is why it’s crucial to start retirement planning now.
If you don’t already save into a private pension, this is where you should start. Workplace pensions in particular have the boon that employers must also contribute towards them.
But Tony Stenning, BlackRock head of retirement in Europe, warns that many aren’t saving enough. He says: “Of those that do contribute to a pension, the average Brit puts just under 7% of their salary a month into a workplace or personal pension. In order to hit their targets, contribution levels need to be closer to 15% or 20%.”
- See our Guide to workplace pensions for more on how this works.
If you’ve still got money left over after making payments into a pension, consider investing for the long term (10+ years) as it’s likely you’ll earn more than you could in cash savings. See our Beginners guide to investing in the stock market.
And despite a recent survey revealing that three in four think the state pension alone is enough to live on, this is unlikely in reality – so don’t rely on it.
- See our Guide to the new state pension.