Retirement Lasts 20 Years

FUTURE PROOF: Average retirement lasts two decades - have you saved enough to provide yourself with an income for that long?

Emma Wall 20 August, 2014 | 4:55PM
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Turning 65 this year? You can expect to enjoy two decades of retirement, according the Office of National Statistics.

New pensioners  also can look forward to pensions reforms next April and the new flat-rate pension being introduced 12 months after that. But to the latest figures from Prudential reveal that when it comes to their own pension savings these new retirees may be underprepared for retirement. In order to provide the £15,800 annual income that the average pensioner would like in retirement, Prudential calculates that you will need a pension pot of £139,000 – and using the same assumptions, someone retiring in 2014 and living for another 30 years will need a pot of £154,000. 

Vince Smith-Hughes, retirement income expert at Prudential, said the changes to pensions, savings and the rules around taking a retirement income that were announced in the Budget in March are good news but it was important to remember that pension pots are finite – and cash can run out.

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About Author

Emma Wall  is former Senior International Editor for Morningstar

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