UK workers will require pension pot of ‘at least’ £260,000

A study carried out by insurers Royal London has suggested that UK workers will require a pension pot of ‘at least’ £260,000 to ensure a comfortable retirement.

In contrast, the total pension pot needed to secure an advantageous retirement in 2002 was £150,000, the study revealed.

It suggested that the increase can be partly attributed to lower interest rates and rising life expectancy.

Royal London also found that those renting could require a pension pot of £445,000 in order to ‘avoid a slump in living standards’ when they come to retire.

Commenting on the study, Helen Morrissey, Personal Finance Specialist at Royal London, said: ‘If our retirement pot is going to support us through a longer retirement and in an era of lower interest rates, we are going to need to build a much bigger pot than in the past.

‘For those unable to get onto the property ladder during their working life, a large private rental bill needs to be factored in to retirement planning.

‘We cannot afford to be complacent about current levels of retirement saving.’

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