Do we need targets to help us save more for retirement?

The Pensions and Lifetime Savings Association (PLSA) has come up with ab suggestion to help people keep their pension plans on track. It has called for savings targets to be put in place to help individuals save enough for a good pension in their retirement years.

According to research (PLSA, Nov 2017 One Family, Nov 2017), 13 million people haven’t made sufficient pension provision and 78% of those aged between 18 and 64 don’t know how to go about finding out how much pension they will receive when they retire.

The PLSA is considering developing a new set of benchmarks that will help savers by providing target figures for them to aim for. Retirement income targets are commonly used in Australia and can help people become more informed about their pension by explaining how much they need to achieve different standards of living – such as minimum, modest and comfortable.

Whilst most people know that they should save regularly throughout their working lives to accumulate enough to retire on, fewer people are aware of how much they might need to live on, or whether their current arrangements are on track to achieve their goals.

This is where getting advice can really help. JPA can provide valuable insight into how much your current pension savings are worth, what level of income you can expect to retire on, and what steps you can take to improve your standard of living in your later years.