Belfast Telegraph

Many 'struggle to fund retirement'

Nearly half of older people see retirement as an exciting new stage of their life but many will struggle to fund the lifestyle they want, a survey suggested today.

Around 43% of people over 55 see retirement as a chance for new opportunities and experiences, with 23% saying they would like to travel, according to insurer Aviva. More than half facing retirement earning between £20,000 and £30,000 have saved less than £30,000 towards their pension.

A lump sum of £30,000 would translate into a retirement income of just £165 a month if the money was used to buy an annuity. But despite the low level of income this sum would produce, 23% of people who have saved less than £30,000 expected to have a comfortable retirement.

Clive Bolton, from Aviva, said babyboomers had enjoyed rising house prices and final salary pension schemes, but that many could struggle to fund their retirement.

He said: "People should think about how they want to spend their days, and how much this will cost."

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