The Average UK Pension: Is it Enough to Support You in Retirement?

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In this video, I look at the average UK pension across different ages. Using the average pension amounts I test it against historical scenarios to assess whether this is sufficient to support an average retirement.

00:00 Intro
01:00 Average UK Pension Pot Sizes
02:49 Retirement Income for an Average Couple
06:08 Retirement Income for an Average Single Person
07:54 How other Factors affect your Retirement Income

UK Pension Data:

*** DISCLAIMER ***
The content in this video is provided for information and entertainment purposes and not financial advice. You must thoroughly research any potential financial or investment decision and fully understand the risks before taking it. If in doubt, you should seek individual advice from a professional adviser.

[mattbennett]

There are 2 sides to living comfortably in retirement. Of course building the best pension you can is certainly one half, but the other side is equally important- learning how to maximise the income you have by controlling your spending. Planning for retirement by reducing / getting rid of debt prior to retirement age is very important. Learning how to place less value on things and more on relationships and experiences is even more so. The latter makes you a better person, reduces your impact on the environment and a better citizen. It's not a sacrifice to consume less, it's a joy.

[geofff]

loads of scaremongering has been done over the years by IFAs exaggerating how much money you need in retirement. If you own your own home and there are 2 of you, then the state pension will easily cover all essentials such as food and heating etc. And so you only then need a level of private income to cover holidays, eating out etc which can be scaled according to your own requirements.

[br]

A key issue to note is that folk already retired (or near retirement) are more likely to have been members of Final Salary Schemes/DBS - the vast majority of these offer indexed linked pensions.

And, these schemes had vastly more invested in them by the organisations the folk worked for than the replacement Defined Contribution Schemes - an example:
Back in 2008 I inherited a team of 8, 1 was on the DBS and the rest were on the DCA. My (internal) budget was charged 8% for the DCA colleagues and 37% for the DBS colleague...

[TCJones]

Makes me glad i stayed I my dead end council job, my current projections are 26k a year plus state pension.. but they I lucky to have 20 years of final sal membership...

[markrozee]

Most people money needs decrease after, say 80, as ill health reduces holidays, golf club membership etc. Sad but true.😢😢😢

[andrewbrazier]

For most of us ordinarily workers it's never actually enough. However it's important not to leave retirement too late for you.
For majority that's well before state pension age
So try to save to bridge that gap whilst you are more active to enjoy it That's my view.
Can't imagine myself working at 67, volunteering yes.
Presently I work 8 months a year & we live within our mean s.

[AndrewHaleyUK]

Youtube comments hey 😂 Quality video my friend, loving the editing, keep at it 💪

[boyasaka]

You need far more money from 60 to 70 than you do need from 70 to 80

My parents retired at 60
So had 6 years to live off savings and private pension before state pension kicked in
My fathers pension was 1300 a month
And mothers 700 a month
Their house was paid for and no car finance or debt
They lived very very well on 2000 a month
Having 5 holidays abraod each year, now they are 70
They only have maybes 3 holidays abroad a year
And they tell me, rhey can easily comfortably live on their state pensions and are not touching rheir private pensions,
They just bought a brand new car, just to spend some money as they have to much

[nealevans]

My partner and I retired at the age of 58, and we are now 60. We were both fortunate to have Defined Benefit (DB) schemes, which provide annual payouts of £37k and £29k, indexed to the CPI. In addition to this, we have around £700k in SIPPs, ISAs, GIAs, and savings, with no debts.

The DB scheme we were part of has recently closed, which seems to reflect a broader trend. We recognize how fortunate we have been.

These videos are very informative—thank you for sharing

[JohnBeeblebrox]

Good video but I must point out that average and median are not the same thing. Maybe get more specific in future?...

[Spscc]

If one's net annual pension is equivalent to 65% of one's body weight in silver, is that sufficient for a comfortable retirement?

[dougm]

These figures are shockingly low….how can you live comfortably with so little in the kitty? £250, 000 doesn’t go far nowadays, a pension pot needs to be more like £1, 000, 000 to feel safe and comfortable….one of my biggest fears all my working life was an impoverished old age…that’s why I worked like a Trojan and spend a lot of time analysing investments!