Why the 'pension mountain' is getting harder to climb – and how big your pot now needs to be
New research compares how much you need to save in today's market to produce a total income of two thirds the average salary, roughly £17,800 a year. The study assumes the worker will qualify for the full new state pension, worth £8,500 a year.
It found someone retiring in 2002 would have needed £150,000 to secure just over £9,000 in private pension income. Combined with the state pension, this equates to two-thirds of the average £27,000 salary.
The combination of plummeting interest rates in the wake of the financial crisis, the...