Start early, save regularly. That seems to be the secret to successful retirement planning.
This new research from Prudential has found nearly one in seven people retiring this year have made no financial provision for their retirement.
More than one in ten will be entirely dependent on the state pension for an income in later life.
On average, people retiring this year will get more than a third of their retirement income from the state pension.
The research also reminded us of the gender gap when it comes to retirement savings, with 19% of women retiring this year not having any pension savings.
Prudential found that 42% of people retiring this year have the majority of their pension savings in a workplace final salary pension scheme.
This tallies with our own experience with clients, although fewer people reaching retirement in the future will benefit from these gold-plated pension schemes and will need to make their own provision for an income in later life.
“While saving is not always easy, especially when the multitude of costs in everyday life get in the way, it is important to try to save as much as you can from as early as you can, to help to avoid financial struggles during retirement,”