Saving for Retirement – Are you Doing Enough?

A recent report by pensions provider Scottish Widows has found that more people than ever are saving for a comfortable retirement. Scottish Widows 15th annual Retirement Report revealed that 59 per cent of people are now saving at an adequate rate, a 4 per cent increase from 12 months ago, when the figure stood at 55 per cent. The increase in savings rates has been attributed to the rise in the minimum contribution levels of auto-enrolment pensions, introduced in April 2019.

To date, over 10 million people have been automatically enrolled in an auto-enrolment pension scheme and according to the Office for National Statistics, the proportion of individuals who are now saving into a defined contribution pension has risen from 17 per cent in 2012 to 47 per cent in 2018.

Although this is a definite step in the right direction, in many cases, it will still fail to provide a pension pot that will be adequate to see an individual through the entirety of their retirement. The Scottish Widows data found that although the proportion of under-30s now saving into a pension has increased dramatically, three in five are saving below the recommended level for a comfortable retirement and 14 per cent of the age group are not saving anything.

Furthermore, the report found that 22 per cent of adults in the UK expect they will never be able to retire.

Auto-enrolment has proven to have a measurable impact on pension savings, but the danger is thinking that this is enough. Those that are able to save more – both into pensions and ISAs – will give themselves a greater level of options when it comes to retirement.

The problem is that many people are blissfully unaware of how much they will need in retirement and therefore how much they realistically need to save. The good news is that there are many different tools available that can help clarify your position.

Regardless of your age, having the discipline of regular saving or setting goals for annual savings can go a long way to funding a financially comfortable retirement.

The Scottish Widows report can be found here.

I am only in this position because of you. One of the best decisions I have ever taken going with GWM.

With great thanks for all your reassuring attention over the last year. It means more to me than I can express in a few words.

I just want to thank you and your team so very much for all you do for me throughout the year. It is a real comfort to know that my investments are in such capable hands. I literally couldn’t do it on my own.

We are both very grateful for the time you spent with us in explaining various options. We certainly feel we now both have a much better understanding of our situation & the decisions which we need to consider moving forward.

Thanks again for your advice, you have given me the kick I needed to take control and I’m very grateful for that.

We feel we can phone at any time during office hours if we need anything clarifying. Our financial adviser knows our personal circumstances and is in tune with our goals and lifestyle. His advice has been and continues to be excellent.

You’ve solved that dilemma for me… Thank you for being so clear and honest as always.

A very personalised service… All advice is tailored to my needs with great consideration to issues I may not have thought of myself. I feel confident about my future finances.

Thank you so much again for your time and brilliant advice.

Just a big thank you for all you have done for our family. We do appreciate it.