Half of savers uncertain they are saving enough

Half of savers uncertain they are saving enough

Some 18m people (56 per cent) saving into a pension are not confident that they are saving enough to let them live the lifestyle they want in retirement, according to research.

According to a survey from the Pensions and Lifetime Savings Association, which polled more than 2,000 individuals, only a fifth of respondents said they were confident they are saving enough, while a quarter did not know.

The research also showed that men were more likely to agree they were saving enough (27 per cent) than women (14 per cent).

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Mid-high income earners - those earning £30,000 - £49,000 - were more likely to feel confident in their savings, with 30 per cent saying so, than those earning £10,000 - £29,000 - where 19 per cent felt happy about their savings.

Among the lower income band - those earning less than £10,000 – a mere 13 per cent thought their savings would suffice for retirement.

Almost seven years after auto-enrolment was launched, minimum contributions were raised to 8 per cent in April this year - with 5 per cent being paid by employees and 3 per cent paid by their employer.

However, those polled by the PLSA had little confidence in the new contribution levels.

Only about a third of respondents (37 per cent) believed the government has set the rates to ensure that everyone will be comfortable in retirement, while 34 per cent disagreed and 29 per cent did not know.

According to Julian Mund, PLSA’s chief executive, savers are still unsure about exactly what their pensions are worth and what this will translate to in terms of real income in their retirement years.

He said: “This Pensions Awareness Week, we want savers up and down the UK to think about their contributions so they know exactly what they can do to ensure they have the retirements they want.”

Pension Awareness Day is held on September 15, with the aim of promoting the importance of saving for the future and to unite the financial services industry, businesses, employers and the government to share ideas and work together to drive better engagement with pension saving.

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