How much can a £250,000 pension pot get you in your retirement?
Story by Temi Laleye
How much can a £250,000 pension pot get you in your retirement?© GB News
Increases in food, energy and motoring costs will see those approaching retirement having to save more to afford the lifestyle they want.
Savers typically aim for a pension pot of £250,000 on average but end up with just over half of that in reality, new research reveals.
This is a massive shortfall in the amount they hoped to have available (£250,000) to buy an annuity or invest to generate an income.
A £250,000 pot can buy an annuity – which provides a guaranteed income for life – worth £12,091 a year at today’s rates, according to Standard Life.
A £131,000 fund can currently get someone an annuity of £6,332 a year.
With many people ending up with just over half of their pension saving goal, Britons are urged to carefully consider their retirement plans so they can ensure they have enough to live off in retirement.
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