Standard Life £131k?

sgx2000

Standard Life recon the average private pension pot at retirement is currently £131k

Ok this forum attracts either, people who know how to use money, or those who want to know how to use money....

But over the last couple of years trawling this forum to gain knowledge, the vast majority of people on here seem to have substantially more than this....

If true this would mean the average retiree would have, with sp, probably only approx. £18k per yaer to live on....

Is this really right?

Brie

I've met quite a few people who have even less than £18k.  And I certainly wouldn't take who is regular on this site as "normal" or "average".  They are people who are, as you say, knowledgeable or wanting to be so.  So working hard to be better than average.  

Thinking about this my OH's pension will be about £14 or 15k.  Mine will be at least mid £20ks until some more expected money comes along for me to add to it.  So we average out.  

hugheskevi

You have to look at 'average pot' statistics very closely.

Is just an analysis of pots being commenced - so is at pot level rather than individual level as individuals might have multiple pension pots?

Is it an analysis of average pot size that doesn't take account of age - a 25 year old with a £20,000 pension pot is in a much better position than a 60 year old with a £50,000 pension pot.

How is Defined Benefit pension wealth accounted for in analysis, if it is accounted for at all?

What is the wider household position? A person aged 60 with a £50,000 DC pot and nothing else may appear in a bad position, but if their partner has £1m in their pension the position is very different.

A combination of the pension tables in the Wealth and Assets Survey and the Pensioner Incomer Series are a couple of the more comprehensive sources of data.

The Pensioner Income Series shows pensioner couples that recently reached State Pension age have a gross income from all income sources of £881 p/w, and single pensioners have £419 p/w. Looking at median income, pensioner couples who recently reached State Pension age have net income before housing costs of £581 p/w and single pensioners have £295 p/w

Marcon

sgx2000 said:

Standard Life recon the average private pension pot at retirement is currently £131k

Ok this forum attracts either, people who know how to use money, or those who want to know how to use money....

But over the last couple of years trawling this forum to gain knowledge, the vast majority of people on here seem to have substantially more than this....

If true this would mean the average retiree would have, with sp, probably only approx. £18k per yaer to live on....

Is this really right?

A tiny self-selecting minority of people use this particular forum and are highly unlikely to represent any sort of 'average'.

According to the ONS, the median average UK pension pot is £32,700, yet this varies significantly depending on age and pension type. For 25-34 year olds, it's £9,300, but for 55-64 year olds it rises to £107,300 - taken from https://www.telegraph.co.uk/money/pensions/private-pensions/average-pension-pot-buy-save-comfortable-retirement-uk/#:~:text=According%20to%20the%20ONS%2C%20the,it%20rises%20to%20%C2%A3107%2C300.

sgx2000

Supposedly the average at retirement.....

squirrelpie

People have the state pension as well as any private pensions. And some people have defined benefit pensions, which presumably reduces the average value of pots.

cannugec5

My husband and I are both retired nurses with occupational pensions. 

I have no idea of the size of the ‘pot’. I’ve rather assumed there isn’t one that relates to us as individuals. 

Hoenir

Many older people will also have DB pension scheme entitlements as well. Auto enrollment didn't start until 2012.  Brown's DB pension raid was in 2007. Be many people in the intervening period that either were excluded from DB or had no access to a pension scheme. Particularly in small private sector organisations.