Pension and retirement facts about the 50-plus generation.

Exclusive research among a representative sample of UK working adults age 50-plus reveals the current state of pension saving.

• 1. Nearly two thirds (64%) of working adults age 50-plus either do not believe or do not know whether they will ever be financially prepared for retirement.
• 2. Just 26% of working adults aged 50-plus believe they are financially prepared for retirement, while 17% believe they will be ready by retirement, but have work to do.
• 3. The average amount working adults aged 50-plus have saved in their pension fund is £51,200. The average man has £68,800 while the average woman has £34,500 saved.
• 4. The average retirement income target is £18,100, with men expecting £19,700 while women expect £16,400. Those aged between 50 and 54 expect £20,300. People who already have a higher household income of more than £70,000 a year, want to retire with a pension income of £32,100
• 5. Nearly six out of 10 (57%) say their pension planning has been set back by events of the past two years. About 29% say their planning has been set back a lot.
• 6. Those who are 60-plus have suffered the most - about 62% of them say their planning has been hit.
• 7. That figure rises to 67% among those with household income of between £50,000 and £70,000. Those with higher expectations of retirement income clearly have more to lose.
• 8. Nearly one in five (18%) say they have made changes to their retirement planning strategies.
• 9. However despite the risks of the events of the past two years, 61% of those surveyed say they have not taken any action to protect their pension funds or to adapt their retirement planning.
• 10. Nearly two thirds of them (65%) expect to be able to retire from full time employment. Just 6% want to carry on working full time, while 16% believe they will have to carry on working full or part time.
• 11. They do not expect the State to provide. On average they believe the State Pension Age for men should be 64.3 and at 62.8 for women - not quite at the level it actually will be by 6 April 2020 when retirement will be equalised at 65 for both sexes.
• 12. Just 18% believe the male retirement age should be increased, while 54% believe the retirement age for women should rise.
• 13. Falling annuity rates have hit pension incomes - in order to generate an income of £10,000 from conventional annuities, a 65-year old man needs a pension fund of £235,000. For £50,000 he needs £1.5 million (Limited Price Index annuity guaranteed for 5 years).
• 14. Only 4% of working adults aged 50-plus have, funds of more than £200,000. Just 1%, have between £500,000 and £750,000 saved.
• 15. The more wealthy people are, the higher they believe the State Pension Age should be. A third of those with household incomes of more than £70,000 believe the male retirement age should rise while 58% believe the retirement age for women should rise.

Source: Metlife's - "10 years to save your retirement publication" - May 2011.  This article is for information purposes only.  For a better understanding of your retirement position and how much you can expect from your pension in retirement we recommend you seek independent financial advice. 

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