Younger investors should set aside 10-14 per cent of their income to be able to fund their retirement, according to Schroders’ Rupert Rucker.
The most recent Schroders Global Investor Study revealed UK investors were saving an average of 11.3 per cent of their income to fund their later years.
The asset manager’s head of income solutions told FTAdviser that this percentage was “not enough, but it’s close”.
Mr Rucker explained: “Actually, savers are doing quite well already.
“Really, it depends when you start and this is the most important thing. If you start young enough, then actually 10-14 per cent – and I’m talking in your 20s – would be enough to give you around 50 per cent of your starting salary.
“Of course, if you start a lot later on in life, that percentage is going to creep up.”
He added: “We can’t specifically say what the right level is, it just depends when you start.”
But he urged clients to “take responsibility” for starting the advice process.
“Once they’ve done that and they’ve accepted they do need to save, then they should go to see an adviser,” he said.
“Now, the adviser can look at their specific circumstances and then give them advice because everyone is different.”
An FTAdviser Talking Point poll conducted earlier this month showed a lack of savings was the biggest challenge faced by advisers with clients who are planning for a sustainable retirement income.
Mr Rucker pointed out the world and the UK has changed in the past few years and people now live longer into retirement.
He insisted: “On the basis that people are living a lot longer, there is plenty of yielding assets out there.
“The key is to really diverse those across some that are providing income today, and some that are providing income and growth to sustain that 20-year period, because inflation will still be persistent.”
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eleanor.duncan@ft.com
