UK - More than half of all working adults will face financial difficulty in retirement, JPMorgan Fleming claims.
Its latest Pension Map of Britain found that 53% of the working population are heading for a retirement income of less than 40% of their final salary.
This is an increase of nearly 50%– or five million people – on 1996 figures.
The fund manager also discovered 43% of the sample were not making any contributions into a scheme.
In contrast, 59% believed they would have a “comfortable” retirement – an unachievable figure under current savings regimes, according to the firm.
It defined the “comfort zone” to be a retirement income of 50% or more of final salary.
JPMorgan’s head of UK institutional business Peter Ball blamed the deterioration of the retirement provision on “falling equity markets, declining annuity rates, demographic pressures and rising consumer debt”.
The research shows that Northern Ireland has the lowest percentage of people facing a “difficult” retirement (41%) and the highest number in line for a “comfortable” future (35%).
The South West of England has the worst prospects for retirement, with only 19% of adults expected to have a “comfortable” retirement.
Ball added: “It is clear that individuals cannot rely on employer pension schemes alone and need to set aside significant savings of their own to top up their pension and ensure a more comfortable retirement.”
Ball added that increasing contributions by £100 a month would reduce the number of people facing financial difficulty from 53% to 35%.
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