We’re now more on track with our pension plans, but don’t celebrate just yet
Good news! We're now better prepared for a comfortable retirement than we were this time last year. But, before you get the party started, you might want to take a closer look at the figures.
One in ten (12 per cent) are now on track to afford the lifestyle they want during their retirement, up from just seven per cent the year before, a study out today has found.
However, the research by Aegon UK also found that the increased number of people headed in the right direction is in part thanks to many lowering their expectations of the annual income they're likely be comfortable with during retirement, falling from £42,000 in April 2015, to £38,000 now.
On a more positive note, people have also become more proactive about their pension. Around a quarter (24 per cent) have checked how their retirement savings are performing within the last six months, while a similar proportion (22 per cent) have taken steps to review their retirement plans.
Read more: The Queen would be living on £18k if she saved like we do
"As we enter an era of personal responsibility for retirement saving, it’s clear that the pensions penny is finally beginning to drop for the UK’s retirement savers," said Steven Cameron, pensions director at Aegon UK. "The range of radical government pension changes has certainly grabbed public attention. And it’s heartening to see people being motivated to engage with their future and meet the challenge of funding and planning for their retirement.
"But the job is far from done – 88 per cent of the population are still falling short of their retirement targets. At this critical juncture, the industry and government need to band together to ensure that consumer confusion doesn’t creep back in."