One in six say they’re “definitely” not saving enough, although more than a quarter “extremely” confident they are, according to our latest poll.
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.
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
More on pensions from loveMONEY:
LISA vs pensions: which is better?