We spend our working lives looking forward to an old age in which we can happily indulge in holidays and hobbies – but now it seems the typical nest egg put aside will vanish just seven years after retirement. The result is that the average Briton will have to contend without any savings at all for the final 12 years of life, a report warns. People in the U.K. are less prepared for retirement than any of 14 other countries. The average Briton wants to retire ‘punctually’ at 65 and believes they would need about £22,500 a year to live comfortably. This could come from State Pension, company pension, income from savings and dividents from investments. But a report warns that savings will typically run out after seven years! For those retiring at 65, their nest egg will have shrunk to zero by the age of 72.
However, average life expectancy is 84 – leaving 12 years after the nest egg is gone. For many the gap will be even longer. The most common age of death in England and Wales is 85 for men and 89 for women, according to the Office for National Statistics. It means the typical man will be left to survive without any savings for 13 years and the typical women for 17 years. Few of working age are prepared to make the necessary sacrifice for the future. Former Pensions Minister, Steve Webb said the report was ‘a startling reminder of the problems we are facing by failing to save for our retirement’.