Experts warn retirees to not rely solely on the state pension for income, as it falls short of the basic living standard required. The state pension, currently at £221.20 per week, is insufficient for many, with experts recommending additional savings through workplace pensions. Scottish Widows research suggests the median retirement income is around £14,300, falling short of the £14,400 needed for a single person's basic retirement standard.
Those approaching their retirement years have been warned not to rely solely on the state pension for their income. The current full new state pension stands at £221.20 per week, or £11,502.40 yearly, although the actual amount most people receive is usually less.
Looking at the figures, Pete Glancy, head of pension policy at Scottish Widows, warned: "Relying on the state pension alone won’t be sufficient to achieve an income which is equivalent to the most basic retirement living standard, as set out by the PLSA.
In a similar warning, Andrew McMillan, founding partner at NOVA Wealth, cautioned that depending on your state pension for your retirement income "is risky and it’s unlikely to support the lifestyle most people want in retirement". He noted that most individuals fortunately have "one of the best investment products" for their retirement thanks to having a workplace pension.
"Your employer’s contribution to your pension plus the fact you get tax-relief on contributions, usually more than doubles the money being put away compared to saving it elsewhere. If you’ve maxed out your workplace contributions, it’s worth speaking to a financial adviser about additional ways to grow your retirement pot."
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