Five key questions people should ask as less than half feel confident they can afford to retire

dailyrecord.co.uk:

New analysis by Standard Life, part of Phoenix Group, has calculated that people who want to achieve a minimum living standard in retirement, which includes enough for the basics and one week’s holiday in the UK a year but no car, require an annual income of £12,800.

However, that figure only applies if the person is receiving full New State Pension payments, which are worth £10,600 over the 2023/24 financial year, and an additional annual income of £2,200.

A separate survey of 1,500 people conducted in May by Opinium on behalf of Hargreaves Lansdown, found that only 41 per cent of people are confident they will be able to afford to retire.A further third (35%) aren’t confident while a quarter (24%) don’t know - this means only 40 per cent have an idea of when they will finish working.The research also suggests that almost six in 10 (59%) don’t know how much income they will need in retirement, while over half (56%) don’t know how much their pensions are worth.Commenting on the findings, Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “Our retirements remain a mystery with many unable to specify how, when, or even if they think they will ever retire.“Only 40 per cent know when they will be finishing work and well over half don’t know how much they’ve got in their pensions.

Many don’t know how much income they are likely to need and less than half understand the different options available for taking income.