Paying into a pension scheme each month is something which many people will do in preparation for their retirement. However, more than two thirds of savers don’t know what their pension pots are due to be worth when they retire, according to recent research carried out by Foster Denovo Limited.
Giving their estimations, the average response came in at £125,700.
However, Foster Denovo Limited has suggested that this could be a significant underestimation for a comfortable retirement.
Research carried out by the consumer group Which? estimates that for a comfortable lifestyle in retirement, the average Briton would need £215,450.
This would be needed to provide a salary equivalent of £27,000 per year from income drawdown.
For a more luxurious lifestyle during this time of life, Which? estimates £502,775 would be needed for a post-tax drawdown income of £42,000 per year.
Jamie Smith, a financial adviser at Foster Denovo, said: “Our research shows that on average consumers…