Saga has launched an online retirement planning tool aimed at giving individuals an insight into how their current saving habits are likely to affect their income in later life.
The new interactive service launched off the back of a survey of almost 1,500 people, conducted on behalf of the life assurer and investment services company, which found that over-50s tended to underestimate the amount they would need to achieve their desired annual income by about half.
On average, the group said they need an annual income in retirement of £15,200, estimating this could be generated from an average pension pot of £143,830.
The tool generates a free downloadable report, which the firm claims breaks down the user’s financial picture into “bite size chunks”. The dossier is based on information pertaining to the individual’s savings and their retirement income preference.
In addition, Saga offers support via telephone and live web chat for those who do not feel confident using the tool online.
Nici Audhlam-Gardiner, managing director of Saga Investment Services, said: “With our intuitive and interactive tool, people can get a realistic view of whether their current retirement plans are putting them on track to retire when and how they want – and if not, what they might do about it. With a simple design, unique Saga insights and support on the end of the phone, our Look Ahead planner can help over-50s take their first steps to planning the retirement they deserve.”
Adviser view
Adrian Murphy, a partner with Glasgow-based Murphy Wealth, said: “We use cashflow modelling instead of online retirement tools. I think these online tools can be a good starting point for people who have not yet sought pension advice. There are still a surprising number of people who do not know how their current saving habits will translate to in terms of retirement income.”
