More than half (53%) of people are now saving adequately for retirement, according to a survey by Scottish Widows.
This is an 8% increase compared with 2013 and is the highest level since 2009. It is also the biggest ever year-on-year increase.
Scottish Widows defines adequate savings as 12% of income or expecting your main retirement income to come from a defined benefits pension.
The report reveals that the monthly amount people are saving outside a pension has risen from £54 in 2006 to £130 in 2014 – an increase of 141% over the last 8 years.
The total amount people have in savings and investments averages £40,000 per person, the highest ever amount.
Key findings:
- 37% of respondents said they were optimistic about their long-term finances in 2014, up from 32% in 2013
- 59% of people do not plan to save in the next 12 months, down from 68% in 2013
- 33% said they do not know how much their pensions, savings and investments will contribute to their retirement income
- 32% do not believe that they will be better prepared for retirement than their parents were
Ian Naismith, pensions expert at Scottish Widows, said: “It is heartening to see that finally people are starting to sit up and take notice of the importance of planning for the future – whether this be through proactively upping their contributions due to a more favourable economic climate, or starting to make plans for their retirement for the first time thanks to auto enrolment.”
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