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May 16, 2018

Why the 'pension mountain' is getting harder to climb – and how big your pot now needs to be - May 16, 2018. | Technology Intelligence | The Telegraph

telegraph.co.uk

Why the 'pension mountain' is getting harder to climb – and how big your pot now needs to be

Sam Brodbeck 16 May 2018 • 8:00am

People approaching retirement today need to amass savings nearly double the size they would have 15 years ago to achieve the same standard of living in retirement.
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...