Do you know how much you need to save into your pension for a comfortable retirement? If not, then you’re far from alone. The Pensions and Lifetime Savings Association’s (PLSA) recent Hitting the Target project found that only 20% of employees are confident that they are saving enough for their retirement.
But, the PLSA argues, guesswork is not enough. Longevity, long-term care and housing costs could all impact the amount of money we need after leaving work, on top of everyday living expenses to fund the lifestyle that we want.
The PLSA argues that introducing savings targets, so that individuals know what they need to save on an ongoing basis for a comfortable retirement, would help. Its research found that 70% of employees said they would be likely to save more for their retirement if they had a target to aim for.
What does it mean for business?
Encouraging employees to take an interest in funding their retirement is an essential part of long-term financial wellbeing. If employees have a clear idea about when they will be able to retire, that also helps employers to plan for the future.
The PLSA has suggested that offering staff a ‘mid-life MOT’ on their finances, to help them understand whether they are on track for retirement, could be a good starting point. At Brunsdon we can provide financial indications and projections to enable your individual members of staff to form a clearer understanding of their true pension position. Please contact your Brunsdon Financial Adviser for information and advice.
Please note that this article does not constitute specific advice. Any information provided to Employees cannot be guaranteed as Investments can fall as well as rise, irrespective of the level of risk chosen, and the value of an investment and any income generated from it cannot be guaranteed and can fall as well as rise as a result of market volatility. Brunsdon is not responsible for the content of third party web sites.