Pension news: Savers MASSIVELY underestimating cost of retirement – how much do you need?

SAVERS could be set for a cash-strapped retirement as a large chunk of Britons have no idea or are dramatically underestimating the size of pension pot needed for their golden years. The UK’s future pensioners are way out in their estimates for retiring, with one in five adults (21 percent) predicting they only need up to £50,000 for their pension pot – £210,000 less than the minimum recommended amount.

This is according to the research from Finder.com, which says the recommended pension pot is sat at £260,000 to £445,000, depending on accommodation costs in retirement and based on the current state pension of just £8,767.20 per year.

Britons on average believe just £100,000 is enough for them to live comfortably in old age, according to the research, while the younger generation are the least prepared for retirement.

Millennials are expected to have the highest cost of living in retirement than any previous generations due to the house price epidemic.

They are more likely to still be paying for a mortgage in later life or forking out on rental accommodation.

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