According to Scottish Widows more than 44% of the British population admit that their savings would last just a couple of months or less if they became unable to work.
Savers are being warned to up their ante – or prepare for poverty in old age. Savings rates may be at record lows, but as life expectancy rises thanks to the medical and technology enhancement so too does the need for a decent savings pot.
Men can now expect to live for further 19 years at age 65, while women can expect to live for a further 21 years at the same age, according the latest figures from Public Health England.
But according to BlackRock’s Investor Pulse survey, four in 10 of the average British have not started to save for retirement. This is despite expressing a desire to retire at 64 years old with an annual retirement income of £23,000, which requires 15-20% contribution of their salary annually. As a result people find themselves having no choice but to work into retirement.
Read the full Morning Star article here