Just how much is your pension worth?

Brett Alegre-Wood
February 25, 2009

Is your pension worth as much as you thought?

This (hopefully) will inform you of the current state of pension schemes in this country and help you make educated decisions about your future.

How much is your pension worth to you?

So it seems people are virtually defaulting to pensions to save for retirement, despite a clear lack of confidence in their investment potential!

With the data we will unearth over the coming months, we hope to challenge this almost automatic view that to invest for retirement you should be saving your money in a pension.

Already I've come across something we thought would give you pause for thought:

A recent survey by the Association of British Insurers (ABI) found that 71% of their respondents felt that they would need 51% or more of their current income to achieve a comfortable retirement. When asked how much they thought their individual pension fund was worth, it turns out that 60% of respondents have a pension pot worth less than £40,000.

One Great Property Idea
Masterclass

How Property Investors with Little Time Can Invest in New Build and Off Plan Property using a Regeneration Strategy and Where Exactly to Invest in 2024.

THIS WEDNESDAY @

1230pm London GMT

Masterclass Begins

TUESDAY

1230pm GMT London

To put that into annuity terms, according to the Financial Services Authority Comparative Tables (from October 2008), a £40,000 pension pot would generate a gross monthly income of £245, which is just £57 per week 1. That means for a full time employee on median earnings, a pension pot of that size would generate only 13% of their pre-retirement income.

To us, that seems like an awful waste of resources for a very small reward.
Maybe it is time to re-evaluate your retirement plan and just how much is your pension worth. If you have concerns about how you're going to fund your retirement, or if you'd like to chat to us about how to build your property portfolio over the coming years to give you the lifestyle you're looking for, do give the team a call on +44 (0)207 923 6100.

Live with passion,
Brett

1: This is based on a single male, non-smoker, aged 65 who purchases a level annuity with no guarantee and excludes any tax-free lump sum taken out at point of annuitisation.


Tags

Pension, UK Pension


Our Capital Growth Picks - Regeneration Hotspots & Developments

We Give You First Access & Negotiate Discounts on london and UK Property Development in the latest Regeneration Hotspots.

London

Manchester

Birmingham

Watford

Plumstead

Our Cash Flow Picks - High Yielding BTL, HMO & Assisted Living

Access Fully Managed High Yielding Property In UK Minor Cities.

Derby

Liverpool

Sheffield

Leeds

London

London

Manchester

Birmingham

Watford

Current Developments

View Available Property

Related Property Articles & News

Ensuring Rental Success: The Art of Pricing Your UK Property Investment Right

Ensuring Rental Success: The Art of Pricing Your UK Property Investment Right

Investing in Buy to Let Property UK: Understanding Market Trends and Opportunities

Investing in Buy to Let Property UK: Understanding Market Trends and Opportunities

Navigating the Rental Market: Insights from UK Property Investment Experts

Navigating the Rental Market: Insights from UK Property Investment Experts

One Great Property Idea
Masterclass

How Property Investors with Little Time Can Invest in New Build and Off Plan Property using a Regeneration Strategy and Where Exactly to Invest.

THIS WEDNESDAY @

530pm London GMT

THIS TUESDAY @

1230pm London GMT

Property Investment... Effortlessly Done For You!