TWO in three Scots who are close to retirement do not have the pension savings to sustain their planned income, a new study has warned. The inaugural Class of 2021 report surveying those planning to retire this year, reveals how ready people are to retire, identifying what worries and excites them most, and how recent events have impacted their plans for retirement. And the study by Standard Life Aberdeen has found that 66% of 2021 retirees in Scotland risk not having enough for what they need when they stop working. The research which examined people s pension pots against their spending aspirations found that a 2021 retiree in Scotland planned to live off £21,331 a year in retirement – almost £10,000 less than the average UK household income (£29,900).
Pension savings warning to people speeding up retirement plans during pandemic
Women nearing retirement are less likely to feel financially ready to finish working than men.
10:41, 23 APR 2021
Standard Life Aberdeen s report, also found that a third of women were feeling very confident financially about retiring (Image: Getty Images)
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Two-thirds of people retiring now are at risk of running their pension pots dry as they grow older, new research claims.
On average, retirees aim to spend around £21,000 a year in their retirement, which is nearly £10,000 less than the average household annual income across the country.
Investment firm Standard Life Aberdeen says a retiree would need a pension pot of around £390,000 on top of their state pension income to cover a £21,000 a year spend over the course of a 30-year period.
But it said that the average value of a Class of 2021 pension pot is lower than that at £366,000 – and a third admit to having less than £100,000 saved.
Two thirds of people retiring in 2021 risk running out of money
The research found that a 2021 retiree plans to spend, on average, £21,000 a year in retirement
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Two thirds of people set to retire in 2021 risk not having the pension savings to sustain their planned retirement income, according to a new report launched today from Standard Life Aberdeen.
In its inaugural Class of report, surveying UK adults planning to retire this year, Standard Life Aberdeen revealed how ready the Class of 2021 is to retire, identifying what worries and excites them most, and how recent events have impacted their plans for retirement.
Two thirds (66 per cent) of those retiring in 2021 will exhaust their pension savings before they die, according to new research from Standard Life Aberdeen.