“You probably haven’t invested enough in your pension!” says investment company

Ageing news now, with the revelation that you almost certainly are going to be penniless by the time you’re able to retire:

Is your pension ready for a 100-year life? The average worker will need a pot of £447,000 at 65 to maintain a good income until death, study says

Britons will need to reach retirement age with a pension pot of nearly £450,000 to have a decent retirement if they are lucky – or unlucky – enough to live until 100 years old, new research suggests.

The study assumes someone on an average annual UK salary of £28,000 who wants to retire at 65 years old and who wants an annual retirement income of £20,000.

Source: Daily Mail, 25th June 2019

As someone young enough to be concerned that retirement will never be a viable option for me, and yet in a vocation which I may theoretically never want to retire from, this is somewhat bittersweet news for me. Which is lucky, because it may not actually be news at all: it may be effectively an advert for an investment company.

The £20,000 income is also based on the assumption of 5 per cent investment growth on the bit of the pot not taken as income that remains invested, AJ Bell said. 

‘The extent to which a withdrawal strategy is sustainable or not will depend on a number of things including overall investment returns, the timing of those returns and inflation,’ says Tom Selby, senior analyst at AJ Bell.