Brits Underestimate Cost of Retirement

There is a mis-match between the income people believe they need in retirement and the actual cost of living

Emma Wall 9 July, 2018 | 1:38PM
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Pension retirement savings income cost retired

Brits are failing to put aside sufficient provision for retirement, according to a survey conducted by Schroders. There is a mis-match between the income people believe they need in retirement and the actual cost of living. Where non-retired individuals expect living expenses will take up just 34% of their retirement income, in actuality it accounts for 49% of expenditure.

The millennial generation’s estimates were furthest from the reality; younger you are the less you expect to spend on every-day expenses in retirement – the closer to retirement you become the more accurate the approximation.

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About Author

Emma Wall  is former Senior International Editor for Morningstar

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