Plymouth workers over £136,000 worse off in retirement relying on pension pots, new report finds

A new report has found the average worker in Plymouth, will face a £136,099 deficit in retirement income if they rely solely on pension contributions. 

The Retirement Shortfall Report, produced by pension advisors Almond Financial, analysed regional salary and life expectancy data of the top 30 most populated cities and towns in the UK before comparing with total pension contributions and retirement living standards to calculate the shortfall UK workers will face in retirement if depending solely on pension income. 

The average recommended annual retirement income for a single person wanting to enjoy a moderate standard of living outside of London is £23,300 (£28,300 in London). Almond Financial ranked the top 30 most populated towns and cities in the UK by the largest real-term shortfall to the smallest.

Workers in Plymouth will have a shortfall of £136,099 should they base their retirement income entirely on pension pots, based on the average annual salary of £25,656 and minimum pension contributions.

At a regional level, London was the city faced with the biggest shortfall in the amount needed to live a financially secure retirement. Workers in the capital are faced with a deficit of £177,847 in retirement income should they choose to rely solely on pension contributions.

Overall, the average UK worker will have a shortfall of £115,768 should they base their retirement income entirely on pension pots causing many to think twice about how much they need to save. 

At the other end of the table, workers in Scotland and Northern Ireland were the least affected by the shortfall with workers in Glasgow, Edinburgh, Aberdeen and Belfast, all facing a deficit of less than £100,000.

The Retirement Shortfall Report

Principal financial adviser at Almond Financial, Sam Robinson, commented:  “The report’s findings will certainly be an eye-opener to some that while we may work all our lives for a pension, it still may not be enough for us to live the retirement we want.

“It’s important to note that the desired lifestyle for retirement will vary from person to person and ultimately it's all down to individuals how much cash they want to reserve, but this report provides a great benchmark in affording a financially secure retirement. 

“But for those who do want to top up their retirement income, there are a number of ways to do this and speaking with a financial or pension advisor will allow you to lay all of your options on the table and decide what is best for you.”

To view the full report, please visit: https://www.almondfinancial.co.uk/retirement-shortfall-report-how-much-do-you-need-to-enjoy-retirement/