BestInvest: Two-thirds of salary needed to maintain standards in retirement

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BestInvest: Two-thirds of salary needed to maintain standards in retirement

Mon 3rd Nov 2008

Retired people need two-thirds of their salary to maintain their living standards as during their working lives, it has been stated.

Senior investments adviser at independent advisory firm BestInvest, Adrian Lowcocks, said that saving a third of one's wages would enable someone to live at the same level as during employment.

He explained that pensions are intended to keep retired life at the same level as during working life.

According to uSwitch.com, 42 per cent of Britons have cancelled insurance or pension contributions as they try to reduce outgoings in the current climate.

A majority of 86 per cent who have cancelled such expenses have saved up to £50 a month, although warnings were later issued about the potential long-term consequences.

In total, 12 per cent were found to have stopped contributing to their pensions.

The 2008 Cost of Retirement report by Life Trust Insurance found that retirement in the UK costs a typical household £413,000, or £326,700 for an individual living alone.

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