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.

Posted in exeter accounting

Exeter Accountant MJ Smith & Co

Celebrating 25 years of excellence.

Free 1st Meeting
Fixed Fees
Free Support!

Find out more

Client Portal Login

Forgot Password?

Latest News

MTD for VAT pilot extended

The introduction of Making Tax Digital (MTD) for VAT is fast approaching. From April 2019, some 1 million businesses with …
Read More

Finance (No.3) Bill and the Budget

The Financial Secretary to the Treasury, Mel Stride has confirmed that the government will publish Finance (No.3) Bill on Wednesday, …
Read More

Tapering of residence nil rate band

The Inheritance Tax main residence nil-rate band (RNRB) came into effect on 6 April 2017. The RNRB is a transferable …
Read More