Record numbers are saving into a pension, but will your retirement pot last into your 90s?
Record amounts are now being saved into personal pensions, according to HM Revenue & Customs (HMRC).
The latest data from the taxman, for the 2016/2017 financial year, shows ÂŁ24.8bn was paid into personal pensions, up from ÂŁ24.3bn a year before.
The number of individuals contributing to a personal pension also increased to a new high of 10.3m.
Individuals are contributing ÂŁ2,400 a year on average, with more men than women saving into their pensions at 59% against 41%.
The taxman suggests auto-enrolment may be helping this boost, with contributions form the under 24s and 25-34 age groups making up around 36% of contributions, this is up from 20% back in 2013.
Auto-enrolment may be one reason more people are saving into pensions as many may not even remember that their employer put them into one.
But there are plenty of other reasons to save into a pension, especially if you want to maintain your standard of living once you stop working, plus you may have unexpected care or household bills to pay for.
It is also important to save for your retirement as we are all living longer and you may not be able to work as much into your golden age. Data from the Office for National Statistics shows there are now increasing numbers of 90-year-olds in the UK.
In 1987 there were 212,067 in their 90s, that figure more than doubled to 579,776 in 2017, suggesting we are all living longer. Will your pension savings last into your 90s?
Speak to your financial adviser to see how you can boost your retirement savings.
- The value of an investment and any income from it can fall as well as rise and you may not get back the original amount invested.
