Some 61 per cent of wealthy individuals are unaware of the size of their pension pot, despite believing the savings required for financial peace of mind was £900,000.
Research by Arbuthnot Latham also revealed women are less familiar with their pension pots than men, with 38 per cent of women admitting they did not know the value of their savings compared to 26 per cent of men.
The survey of 500 UK residents with a net worth of at least £100,000 found there was a gender gap in how much men and women thought they would need in retirement.
Women respondents believed on average they would need £829,109 while men believed they would need £934,957.
In February, the Pensions and Lifetime Savings Association's Retirement Living Standards found the price of a moderate retirement for a single person was £31,300 for 2023 to 2024, up from £23,300
Eren Osman, managing director of wealth management, said: “The people we spoke to said £900,000 of pension savings would be enough to give them financial peace of mind. However, this figure will be difficult to maintain in retirement without careful planning.
“While it is a significant sum, inflation can erode the value of your pension pot over time; sustained growth is crucial in your portfolio.”
Data also showed the proportion of those aware of their savings was larger amongst those with £500,000 or more in investable assets (71 per cent) compared to those in the ‘lower’ net wealth category with £100,000- £499,000 (54 per cent).
Among respondents 62 was the average age they were looking to retire, however they were still uncertain about whether their pension savings would be sufficient to sustain their lifestyle.
Some 80 per cent said they would still be able to achieve their retirement age given the current financial outlook with 20 per cent reporting they would miss their target retirement age because of it.
The research also revealed younger savers were more optimistic with 55 per cent of those under 35 believing their pension will enable a comfortable retirement compared to just 24 per cent of those aged 45-54.
Osman added: “Saving for retirement is the bedrock of a financial plan, but our research reveals significant gaps in people’s overall understanding of whether their pension savings will support a comfortable retirement, meaning many will miss their target retirement age or may be forced to downgrade their lifestyle expectations.”
alina.khan@ft.com
