Pensions: four in 10 not confident they’re saving enough for retirement, our poll finds

Pensions: four in 10 not confident they’re saving enough for retirement, our poll finds

One in six say they’re “definitely” not saving enough, although more than a quarter “extremely” confident they are, according to our latest poll.

lovemoney staff

Investing and pensions

lovemoney staff
Updated on 27 June 2016

Almost four in 10 people aren’t confident they’re setting aside enough money for their retirement, a new loveMONEY poll has found.

Of the 780 respondents, one in six (17%) told us they are “definitely” not saving enough, while a further 22% said they are “not very” confident. So that's a total of 39% who are at best unsure whether they'll have enough funds stashed away when they finish working. 

On the upside, a third (34%) of respondents said they are “moderately” sure they're on track with their retirement plans, while more than a quarter (27%) of our readers are “extremely” confident they’ll be OK when they retire.

Below is a breakdown of the votes in full.

Four in 10 not very confident they're saving enough for retirement

Prepare for retirement: compare SIPPs

How much money should you set aside for retirement?

It can often be difficult to know just how much money you’ll need for a comfortable retirement.

If you’re unsure, you could follow this simple formula, says Darren Philp, director of policy and market engagement at pension company The People’s Pension.

“As a rule of thumb, if you want a half decent income in retirement, take the age at which you start saving and you should save half [that number],” he said.

“If you start saving at 20 years old, you should save 10% [of your wages] over your lifetime and will get an OK pension. If you delay it until you're 40, you'll have to set aside a fifth of your income. ”

How to prepare for retirement

Obviously, the earlier you start planning for your retirement, the less of a challenge it will prove.

For the younger readers out there, have a read of our guide on how to save for retirement when you’re young.

For everyone else, take a look at our get ready to retire guide.

Compare Self-Invested Pension Plans (SIPPs) at the loveMONEY investment centre

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