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.