Retirement savings at 5 year high

More than half (53%) of people are now saving adequately for retirement, according to a survey by Scottish Widows.

This is an 8% increase compared with 2013 and is the highest level since 2009. It is also the biggest ever year-on-year increase.

Scottish Widows defines adequate saving as 12% of income or expecting your main retirement income to come from a defined benefits pension.

The report reveals that the monthly amount people are saving outside a pension has risen from £54 in 2006 to £130 in 2014 – an increase of 141% over the last 8 years.

The total amount people have in savings and investments averages £40,000 per person, the highest ever amount.

Key findings:

  • 37% of respondents said they were optimistic about their long-term finances in 2014, up from 32% in 2013
  • 59% of people do not plan to save in the next 12 months, down from 68% in 2013
  • 33% said they do not know how much their pensions, savings and investments will contribute to their retirement income
  • 32% do not believe that they will be better prepared for retirement than their parents were.

Ian Naismith, pensions expert at Scottish Widows, said:

“It is heartening to see that finally people are starting to sit up and take notice of the importance of planning for the future – whether this be through proactively upping their contributions due to a more favourable economic climate, or starting to make plans for their retirement for the first time thanks to auto-enrolment.”

Contact us to discuss your retirement planning.

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