Hundreds of thousands of over 40s are at risk of being left short when it comes to their retirement savings.
An estimated 140,000 40 year olds are projected to live to the age of 100, meaning they will need to save up 33 years worth of income, assuming they work until the age of 67. This could leave as much as a £250,000 deficit in the average savings of workers.
According to insurance group LV=, those in their 40s believe they will need around £1,450 a month to provide a secure retirement, with the current value of their pensions standing at around £50,000 on average. After state pension is factored in, this still leaves a deficit of more than quarter of a million. Luckily, there is still plenty of time for pension savers to boost their retirement funds.
How To Save
Continuing to save into your pension is vital, otherwise you miss out on tax relief from the government, as well as employer contributions. If you did not opt-out of your workplace auto-enrolment pension scheme, you will see your contributions increase to 4% in April 2019 too. You may also want to save into a tax-efficient Isa to help build your retirement pot up.
More information on the worries around projected pension funds can be found on the This Is Money website.