Pensions - Articles - Queen's 90th birthday & the longevity of retirement savings

 “Queen Elizabeth II’s 90th birthday is a great reminder that we should celebrate the fact that people are living longer. But with longer life expectancy the need for financial planning has never been greater. Of course peoples’ circumstances differ and there is no one size fits all approach; some people, like her Majesty, actively choose to work beyond retirement age because they’re healthy and want to, unfortunately others have no choice as they have not saved enough. What our Investor Pulse survey tells us is that the average Briton wants to retire at 64 years of age with an annual retirement income of £23,000. Also, 40% envisage a period of semi-retirement starting at age 59. However, despite these aspirations, four in ten people have not started to save for retirement, and half (49%) are not confident they will achieve their retirement goals. The unintended consequence is that many more people might find themselves faced with no choice but having to work way beyond the state retirement age.

 “It is therefore vital that people address the gap between aspiration and reality when it comes to their retirement savings. 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 15-20%. However, living longer needn't be such a challenge if you make your increased longevity your friend. Save as early as possible, throw off the safety blanket of cash and think long-term with your investments. Then hopefully many more of us will be celebrating as fulfilling and happy a 90th birthday as her Majesty.”