Planning for retirement in the 2050s – a new report with Aviva

We supported Aviva in creating a new report, published today, ‘Planning for retirement in the 2050s’.

The report analyses the challenges facing those who are set to retire in the 2050s – aged 32 to 40 today – and explores the support and policies they need to manage their wealth in later life.

Drawing on new analysis to understand what retirement will look like for future retirees, the report examines pension savers’ knowledge and understanding of how much they need to save to retire comfortably, how to invest their money, and where to go for help and guidance so that their pension wealth lasts throughout retirement.

The report found:

• Almost 3.4 million 32-40 year olds saving into their defined contribution pension could accumulate £225,000 or more in pension savings by the time they retire in 2050
• Although significant, this wealth is unlikely to provide a moderate retirement income according to Retirement Living Standards (PLSA)
• Majority (64%) of those on middle incomes due to retire in the 2050s say that they do not know how much they need to save to achieve their desired retirement income level
• More than half of this group (52%) say they “wouldn’t know where to start”, when it comes to planning for their retirement
• The majority of UK adults yet to retire (72%) want unbiased advice; but just one in ten (10%) of those on middle incomes retiring in the 2050s have taken advice
• Paying an extra 2% into a pension each year, could increase total pension pot by £56,000

You can read the report in full here.