Pensions: four in 10 not confident they’re saving enough for retirement, our poll finds

Investing and pensions

Updated on 27 June 2016 | 1 Comment

One in six say they’re “definitely” not saving enough, although more than a quarter “extremely” confident they are, according to our latest poll.

Almost four in 10 people aren’t confident they’re setting aside enough money for their retirement, a new loveMONEY poll has found.

Of the 780 respondents, one in six (17%) told us they are “definitely” not saving enough, while a further 22% said they are “not very” confident. So that's a total of 39% who are at best unsure whether they'll have enough funds stashed away when they finish working. 

On the upside, a third (34%) of respondents said they are “moderately” sure they're on track with their retirement plans, while more than a quarter (27%) of our readers are “extremely” confident they’ll be OK when they retire.

Below is a breakdown of the votes in full.

Four in 10 not very confident they're saving enough for retirement

Prepare for retirement: compare SIPPs

How much money should you set aside for retirement?

It can often be difficult to know just how much money you’ll need for a comfortable retirement.

If you’re unsure, you could follow this simple formula, says Darren Philp, director of policy and market engagement at pension company The People’s Pension.

“As a rule of thumb, if you want a half decent income in retirement, take the age at which you start saving and you should save half [that number],” he said.

“If you start saving at 20 years old, you should save 10% [of your wages] over your lifetime and will get an OK pension. If you delay it until you're 40, you'll have to set aside a fifth of your income. ”

How to prepare for retirement

Obviously, the earlier you start planning for your retirement, the less of a challenge it will prove.

For the younger readers out there, have a read of our guide on how to save for retirement when you’re young.

For everyone else, take a look at our get ready to retire guide.

Compare Self-Invested Pension Plans (SIPPs) at the loveMONEY investment centre

More on pensions from loveMONEY:

LISA vs pensions: which is better?

You can retire on less than you'd think

Pension freedoms: all you need to know

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