Savers face retirement shortfall

People saving for retirement are facing an average financial shortfall of almost £100 per week in retirement, a study by Friends Life has found.

Data on the savings habits of more than 18,000 people revealed that:

• the average expected retirement income is £409 per week
• the average actual retirement income is £312 per week
• the average weekly deficit for retirement savers is £96.67.

The study revealed differences between the UK’s regions and cities:

• Londoners are facing the biggest weekly deficit – £123.87
• Bristol had the lowest shortfall of £65.77
• All UK regions, on average, are facing a weekly retirement income shortfall.

The research found that savers in the South East, Scotland and the West Midlands are already saving as much as they can afford into a pension.

But almost 60% of people in the South West, the East Midlands and the East of England are not investing in a pension at all.

Andy Briggs, group chief executive at Friends Life said a combination of “a lack of awareness, lack of planning and soaring living costs” was to blame.