Research identifies gulf in saving targets and pension pot size
There is a significant gulf between the amount of income people expect to attain in retirement and the amount of money they are setting aside to achieve this goal.
Research from Tilney Bestinvest found that the most common pension pot size was up to £19,999.
However, when asked what they thought an adequate and comfortable level of annual income in retirement would be, the majority said between £15,000 and £20,000 per year.
Given that this would require a pension pot of around £350,000, this leaves a gap of £330,000.
Financial Planning Director at Tilney Bestinvest, David Smith, said people approaching retirement are often underprepared.
"There are only three ways to address this - working longer, saving considerably more and achieving strong investment performance," he commented.
"Continuing to work in retirement may be a positive lifestyle choice," Mr Smith added.
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