Retiring This Year? You Could Receive Almost £20,000 Per Annum!

Those retiring this year can enjoy £1,200 more than those who retired ten years ago. While this is the case, which pushes the pre-tax income to £19,900 per annum, there are still those who have not planned and saved for their retirement years.

In fact, forty six percent of those retiring feel that they are not financially prepared for giving up work or they are not confident in the preparations that they have made. Those who retired last year, were receiving £18,100 per annum, which has now been boosted to just below £20,000.

Final salary pension schemes which provided retirees with a generous inflation proof income have become far and few between these days with only a half of all employees who are nearing retirement being in the position to have an income which will ensure a comfortable retirement. Twenty seven percent of these soon retired persons believe that they don't have enough pension to retire comfortable in the long run.

Our biggest concern here at PWS Dubai is the number of people who are expecting a certain amount when they retiring and finding out they only receive a set amount, these differences are vast.

Underestimating Amounts

The main concern is the number of people who actually underestimate the amounts that they need in order to retire comfortably and how much they really need in order to get close to the salary they were earning while still working.

Ideally a person retiring should have a pension pot of at least £100,000, which will provide them with an income in the region of £5,000. The problem is that the majority of those nearing retirement haven't built their pot to near this size.

At PWS Dubai, our concern is that not enough people are making their retirement saving a priority. With expensive cost of living, it's not easy for everyone to put money aside each month for when they down tools and stop working.

Thousands of pensioners in the UK rely on only £7,000 per annum, which is to pay all their bills. For the pensioners who are really struggling , the majority of their pension pot comes from state pension.

Good News Ahead

Some good news is that the retirement incomes have increased over the past five years. With this years increase, those retiring this year are receiving good news. Ten percent increase from last year will make a definite difference to anyone who is retiring during 2018.