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Pensions: Workers are not saving enough to retire in the style they want

Research showed that people would like a retirement income of £22,200 per year - but most won't reach that unless they start saving more pretty soon

Simon Read
Saturday 03 October 2015 02:49 BST

There seems to be increasing uncertainty about pensions and what we need to do about saving for retirement.

A report published this week, for instance, suggested that most workers are confused about how much to save and where. They don't know what income they'll need in retirement or even how or when to withdraw their cash.

Does that sound like you? There are millions of similar people, reckons Aberdeen Asset Management. Meanwhile the accountancy firm PwC warned that workers are putting too little into their pension pot, leaving many with much less than they think they'll need when they retire.

PwC's research showed that people, on average, would like a retirement income of £22,200 per year. But most won't reach that unless they start saving more pretty soon.

One thing is certain: even under its new format from next April, the state pension is likely to be inadequate for most people, which means planning for retirement is more important than ever.

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