Moneygate

Sort out the best pension plan to fund your retirement, say Moneygate.

The average UK household will need more than half a million pounds to cover the cost of living during retirement, say Moneygate.
According to recent research, 20 years of retirement will cost the average household a whopping £564,227.

But despite this, Annabel Green, of national IFAe Moneygate, said that many workers were not taking adequate steps to financially prepare for this period in their life. She said: “When it comes to pensions, many people think it’s something they can put off thinking about until they’re older, but that is a big mistake. People should start saving into a pension as early in their life as possible, and make sure they keep track of how their pension pot is progressing.

"People retiring today can expect to live for 20 years but with annuity rates falling and the cost of living rising, funding retirement can be a difficult task.”

The research also showed that the half a million pounds figure varies dramatically depending on where people live. For instance, households in London will need £194,602 more to cover the cost of retirement than those in the North East.

Annabel added: “The best advice is to shop around and see what’s available – a lot of websites have pension calculators, which can give you a general idea of what you should be putting into a pension fund each month. It’s also worth talking to an independent financial advisor to find out what options could be right for you. Once you have something set up, you should also take the time to ensure that your retirement income is working as hard as possible for you on an on-going basis."

Go to www.moneygate.co.uk for more information.