Interesting article on pension plans on our site this week showed the remarkable gap between our plans for our retirement, and what we’ll actually be able to afford, once we finally hang up our toolkits and overalls (or business suits, for those of you watching in black and white).
The report, which is by by Aviva, says that for a quarter of us, our pension planning includes some globetrotting.
Half of us want to seek out ‘new opportunities and experiences’, whatever that means – although it sounds as though there could be travel involved, which means running a car.
And half of us want to spend more time visiting our loved ones. Definitely a car needed there (unless they are conveniently gathered in the same lunatic asylum).
Well, here’s the reality: if you’ve been earning between £20-£30k approaching retirement, like most people, it’s likely that your pensions pot for your private pension will be less than £30,000. That will most likely get you an income of just £165 a month, or around £41 a week.
Ok, you may also have the basic state pension – but did you know that is still under £100 per week for a single person, or £132 at best, if you qualify for additional benefits?
Not a fortune – and then you have to think about how inflation will deplete your savings as well. The cost of a loaf of bread 30 years ago was 21p. That would buy you 3 slices of bread today. Think about it. Bad news for your little nest egg. (Total bummer, if you have a wheat allergy.)
This confirms what I’ve always suspected.
Ever wonder why, when we retire, so many of us get stuck into working in the garden?
It’s because we can’t afford to go outside the gate.
Any thoughts on planning for retirement? Should we depend on our NI contributions alone? Will we be thrown on the generosity of the next generation? Will they make us listen to their music? Blog now! We’d love to hear your views …..
Read full article on pension expectations here
