£50,000 Average Pension Would Only Give £2,500 Per Year

Two years after the pension freedom changes were introduced, a review has shown that the average pension pot has risen from £29,000 in 2015, to £50,000 today. But even that increased figure would only give an average income of £2,500 per year after retiring. The pension freedoms (which allow people to cash in their pension at the age of 55, rather than having to buy an annuity) seem to have had a positive effect overall on saving for retirement, but their are still concerns that it is still not enough.

iNews reports

“A total pot of £50,000 would mean an annual income of £2,500 a year for a person aged 65 or older. Combined with the full state pension of £159.55 a week, this would give a total annual retirement income of around £10,800. The average annual retirement income people aspire to is £32,270, despite the average UK salary being £28,000. Pensioners are told to aim for at least 60 per cent of their median salary after housing costs. Around 14 per cent of pensioners in the UK, or 1.6 million people, are living in poverty, says the Age UK charity. A quarter of UK workers now expect to be working full-time beyond the age of 65.”