According to the government, 13 million people will see a drop in their standard of living in retirement. When you read this kind or article you begin to realise that most people are sleep walking to poverty.
Look at this article from Money Marketing
The article suggests that most people would need 70% of their pre-retirement income to maintain their standard of living. Quite frankly when you understand the level of income that can be derived from the pension pot you have built up over many, many years, you will have the realisation that the percentage drop will be dramatic to say the least.
This simple table from the SIPP section of our website shows the reality of the income derived from the personal pension pots that most people have built up as their main source of income in retirement.
How large is your “pension pot”, and therefore how much income are you looking forward to?
| My Fund is | Interest @ 5% (if available) |
| £100,000 | £5,000 income per annum |
| £80,000 | £4,000 income per annum |
| £60,000 | £3,000 income per annum |
| £50,000 | £2,500 income per annum |
| £40,000 | £2,000 income per annum |
| £30,000 | £1,500 income per annum |
| £20,000 | £1,000 income per annum |
The proposed levels of contributions into the Government new initiative “Auto enrolment” will do very little to bridge the gap and therefore we believe a little honesty would not go a miss. If the general public were fully informed to the facts relating to the actual income they are likely to attain from their pensions
At Property4Pensions, we strive to de-mystify and educate prospective clients as to the reality of the situation before it’s too late. At least then they could make an informed decision on the best course of action to improve their own individual situation.