Those who save are saving at record levels, but those who save nothing have increased too
Scottish Widows has revealed pensions savings levels have reached record highs – with 56% of people surveyed now saving enough for their retirement – but it also finds more are saving nothing at all, and have “unrealistic” expectations about when they can comfortably retire.
The research, among 5,000 savers, shows the average amount this sample is saving is now 12% - the first time in the report’s history that this level has been reached.
It also found 19% expect to save more in the next 12 months with 40% saying they feel positive about their long-term financial situation.
However, the figures reveal a savings story of two halves. The amount of people with no savings at all has increased from 17% to 19% in the last year, which is a return to levels recorded in 2009, at the height of the financial crash.
Ian Naismith, retirement expert at Scottish Widows, said: “Despite positive signs, our research shows there is still confusion around how actions today translate into money tomorrow, with many people retaining unrealistic expectations about what their income in retirement might be.”
It finds people working in their 20s and 30s today still want to retire at 62, even though they face the very likely prospect of having to work towards or even beyond their 70s.