Research shows that more than 42 percent of Britons say they don’t have enough saved to be able to afford to retire.
The key to saving for retirement and “having enough,” is starting early an expert has explained.
Nearly a fifth (17 percent ) said they wish they had started planning for retirement earlier.
Those in their 50s and 60s have been urged to look at their pension finances as they may need to vastly increase their retirement savings.
There are ways to try and boost their pension pots now as retirement age grows closer and closer.
Shona Lowe, a financial planning expert at abrdn, shared her guide to saving for the future for those approaching retirement.
For those still working, she explained now is the time to really start thinking about when they could retire and the type of retirement they’d like.
The expert suggested using a retirement calculator or online guides that will help one determine how close they are to being able to retire and how realistic their hopes are, or speak to a financial adviser if they want an answer that’s individual to them.
She said: “Remember, at 55 you’ll generally be able to access your pension, but consider whether you really need to.
“It may be a better financial decision to use other savings or investments to provide an income for you and leave your pension alone until later, particularly if you want to still be able to pay money into your pension.
“You also need to ensure you have enough money to last throughout your retirement years, so making sure you are only taking what you need and are being as tax efficient as you can in how you do that, can help make your savings last as long as possible.”
Britons can use the Government’s free State Pension forecast tool to see what they can expect to get as their State Pension, and when.
The State Pension age is currently 66, but exactly when one will start receiving it depends on when they were born and the amount they are entitled to will depend on their National Insurance contributions and credits.
The state pension makes up a key part of many older Britons’ income with the full new state pension currently at £203.85 a week while the full basic state pension is £156.20 a week.
State pension payments are increasing 8.5 percent in April, with the full new state pension rising to £221.20 a week while the full basic state pension will be £159.50 a week.
As people get closer and closer to retiring, they should make sure they’re topping up their pension as much as they can and saving as much as they can before they stop earning a regular income.
Ms Lowe added: “Whatever your plans, it’s important to remember that everyone’s circumstances are very different, but at any stage, you can take steps to set yourself up for a better financial future.
“Saving something, no matter the amount, is a step in the right direction.”
