Pensions shortfall

Young workers are underestimating the amount of money they will need to save for a comfortable retirement by an average of nearly £240,000 each, new findings from stockbroker Selftrade show.

Nearly half of people in their 20s and 30s admitted they had no idea how much they needed to save into a pension pot, while those who did claim to know thought they would need only around £260,000.

But Selftrade said a pension pot of this size would buy people an income of just £13,000 a year. For a pension equivalent to average earnings of £25,000, savings of £500,000 would be needed.

"The message is simple," said Selftrade spokesman Neil Jamieson. "Young people should start saving as much as possible now."