Are you concerned that you are not saving enough for your retirement? Well, one option may be to work longer. On average, working for an extra five years could add £46,000 to your pension – adding about two-thirds extra to an average UK pension pot. That could increase the monthly income you receive in retirement by over £300, according to pensions company Aegon. Recent studies show that many Brits are worried about running out of money in retirement, and looking for ways to counter the problem.
The Independent reports –
“Those approaching their 65th birthday could increase their monthly income by more than £300 a month based on typical pension savings and income levels, according to Aegon, by deferring their retirement and continuing to pay into a pension policy until the age of 70… On average, those aged between 55 and 64 who were contributing to a pension were paying £355 in a month, and had a total fund of about £105,500, which may produce a monthly income of around £457 for the rest of their lives (based on a 4 per cent annual net return on their investments and other factors)… The figures follow news that retirees are seriously concerned that they will run out of money. More than a third of retirees are worried their cash will dry up before they die and a quarter say they don’t think they have enough money in their pensions to cover their retirement, a study by Sunlife found last week.”