More people struggling to fund retirement

A new survey suggests that a large number of people heading towards retirement are struggling to fund the lifestyle they want when they give up work.

The survey, from insurer Aviva, showed that over half of those earning between £20,000 and £30,000 a year have saved less than £30,000 towards their pension. That would mean an income of just £165 a month if the money was used to buy an annuity. However of those who had saved less than £30,000, 23% still expected to have a comfortable retirement.

Clive Bolton, a retirement director at Aviva, said: “Babyboomers have enjoyed certain benefits such as rising house prices and final salary pension schemes, but unfortunately many still struggle to fund the retirement lifestyle they desire. In the run-up to retirement, people should think about how they want to spend their days, and in reality, how much this will cost.”