PLANNING
Pressure to make your
own provision
There are a number of factors that mean you have to take more responsibility
for your own retirement, but a lot of assistance is now available.
Reduced contributions from companies, the trend of
working for many employers and the rise of selfemployment (with no organised pension scheme)
means that “being taken care of” is a concept from
the past.
Current figures show the average defined
contribution pension pot contains just £50,000
by the time the owner stops working.
If you assume that you will live for a further 15 years
after retirement, that’s just £3,300 of additional
income on top of your state pension a year. If you
were to buy a standard annuity, it would provide an
annual income of £1,832*.
Coupled with the state pension, you’d be looking at
living on an annual income of £7,924.
Key points
The average DC pension pot is just £50,000
That would buy an annuity of £2,618 per year**
Coupled with a state pension, that’s an
income of