Pensions - Articles - Professionals in the dark on retirement income needs

 New research from Wesleyan reveals that most professionals are worried that they will not be able to adequately fund their retirement. The research focused on Wesleyan’s core customer groups of doctors, lawyers, dentists and teachers.

 The average respondent thought they would need £39,350 a year to live on in retirement, compared to the average pension income of £14,376.² Only 27% were relying just on a pension for retirement income, with more than half having plans to use their property for additional support.

 The survey also showed that more than two thirds (67%) didn’t know how much income their pension arrangements would generate and a similar number (61%) were worried they wouldn’t have enough to live comfortably in retirement.

 Only 27% said they were planning to retire early, down from 34% in 2011³ and over a quarter (26%) felt they would have to work past their retirement age.

 46% reviewed their retirement planning less than once a year and of those more than half either couldn’t remember the last time they reviewed their plans, or hadn’t done so since joining their pension scheme.

 Samantha Porter, Wesleyan’s Group Sales and Marketing Director, said: “People often have a blind spot when it comes to planning for their retirement income. They also often over estimate how much they will need once they stop working.

 “The key thing is to have a goal and then work out how to achieve it. Pension planning should be part of a regular financial review as changes such as the fall in pension tax allowances and the initiatives announced in the Budget recently could all have an impact. We’d recommend that everyone gets into the habit of reviewing their finances at least once a year.”