High Hopes for UK Pensions With Scots Expecting Less

A report has found that those retiring this year have the highest expectations for their income post retirement since 2010, however Scots are expecting less than the rest of the UK.

A survey from Prudential, found that those who are retiring in the UK in 2015 estimate an income of around £17,000 which represents the largest estimate since 2009, and is a further £1,200 more than those retiring in 2014 expected.

Scotland An Anomaly

Despite the positive expectations, those living in Scotland expected to be 7% worse off than those who retired in 2014, with the vast majority of those expecting their annual income through pensions and savings to be around £16,500.

In 2008 when the survey first began, the expected amount was at an all time high, with the vast majority of those retiring expecting almost £19,000. With inflation taken into account however this years estimates represents one of the largest gaps from expectations to reality.

If the consumer price index CPI is taken into account, someone retiring this year would need an income of £22,720 to have the same spending power of those who retired in 2008 on an income of £18,700. 

Pension Reform to Limit Savings?

A subsequent poll from Scottish Widows showed that many Scots would consider dipping into their pension in order to care for elderly relatives. A think tank from the group found that 27% of those surveyed planned to take from their pensions savings to care for elderly family members following new pension reforms.

The survey found that 42% of Scots feared how they would cope financially in retirement.

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