Over half (53%) of people are saving adequately for retirement, up from 45% in 2013, according to a survey by Scottish Widows.
This is the highest level since 2009 and the biggest ever year-on-year increase.
Scottish Widows defines adequate saving as 12% of income or expecting your main retirement income to come from a defined benefits pension.
The report reveals that the monthly amount people are saving outside a pension has risen from £54 in 2006 to £130 in 2014 – an increase of 141% over the last 8 years.
The total amount people have in savings and investments averages £40,000 a person, the highest ever amount.
Key findings:
- 37% of respondents said they were optimistic about their long-term finances in 2014, up from 32% in 2013
- the number of people who do not plan to save in the next 12 months has fallen from 68% in 2013 to 59% in 2014
- 33% said they do not know how much their pensions, savings and investments will contribute to their retirement income
- 32% do not believe that they will be better prepared for retirement than their parents were.
Ian Naismith, pensions expert at Scottish Widows, said:
“It is heartening to see that finally people are starting to sit up and take notice of the importance of planning for the future – whether this be through proactively upping their contributions due to a more favourable economic climate, or starting to make plans for their retirement for the first time thanks to auto-enrolment.”
Contact us to discuss your retirement planning.
