People at risk of missing out on retirement
No matter how much a person loves their job, they can’t help imagining what their life will be like when they are no longer a slave to the 9 to 5! However recent figures have shown that for many of us retirement is not only a long way off but also a very short lived event.
According to research by self-investment personal pension (SIPP) provider, Liberty SIPP, for the average man to maintain an income of £26,500 he would need to a pension pot of £349,300. In order to get this he would need to work until he was 80 and contribute 8% of his salary.
So when could I retire?
|Income||Tax free lump sum||Retirement Age|
With the average man dying at 85 and the average woman living until 89, this would mean they would only get to enjoy retirement for 5 and 9 years respectively.
But while the average homeowner may not have much in the way of pension provision – the UK average is just £30,000 - they do have a significant financial asset in the form of their home which, with equity release, could help them enjoy retirement much sooner.
Richard Espley, Head of Equity Release at Goldsmith Williams, explains:
“While it is common for a retiree to take a drop in income – often up to 50% - these latest figures show that the average person is falling short of even this target.
“What’s worse is many are already doing everything they can to save for the future but with the increasing cost of living, there is no opportunity to up their pension contributions.
“Equity release could provide many homeowners with a much needed financial boost. By unlocking some of the equity tied up in their most valuable asset, homeowners could say goodbye to the nine to five much earlier than they would otherwise whilst still maintaining a decent standard of living in retirement.”
Content correct at time of publication