Saving for retirement by contributing to a pension scheme is something many people will do. However, a new report into how much individuals need to save in order to retire comfortably has highlighted that many may not be on track to reach this.
According to the new report by Blacktower Financial Management Group has revealed that Generation X need to save £375,676 to retire comfortably.
These savings are required in order to retire on an income of £26,834 per year – which is the amount needed to live comfortably in the future, the report said.
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The research found that London is the top UK city to be on track to save this sum for retirment, however, only 14 percent of residents here have hit this amount.
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Meanwhile, Belfast was ranked as the worst city in the UK for retirement saving, with 49 percent of residents having saved northing towards their retirment.
So, how much should people have put away for their retirement according to their ages?
Millennials in their early thirties should have already put away more than £70,000 should they want a “comfortable” retirement – financially speaking.
And, according to Blocktower, 25-year-olds with an average of just a year of full-time work under their belt need to have already saved £15,745 – regardless of what else they are paying for.
But, in reality, retirement savings look bleaker for many millennials.
Figures suggest Britons under 34 have only saved around £1,000 for retirement.
In a bid to help people work out whether they are on track, Blacktower has created a table in which a person can check their age against the amount they may need to save.
Following the research, Blacktower Financial Management Group has shared some top tips on how people can save for retirement.
3. Talk to your spouse or significant other about savings
“Be open with your partner about your finances, and about how you should both be saving and will spend in retirement.
“It’s always helpful to chat openly about finances and avoids any awkward discussions later down the line.”
4. Prioritise your pension
“If you concentrate for saving for your pension rather than saving short term this will help yourself long term.”