£6K annual pension top-up is needed
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The UK has the biggest pension gap in Europe, standing at £318bn, according to Aviva.
The company says the average UK person due to retire between 2011 and 2051 needs to save an additional £10,300 a year to close the gap.
Germany has an average individual pension gap of £9,700, France has a gap of £6,600 and in Spain the gap is £5,900.
Overall, the research shows there is a £1.6tn gap between what Europeans need for retirement and what they have already saved to be sure of adequate income.
Aviva says a 50-year-old Briton needs an additional £6,200 annual top-up to fund their retirement while a 20-year old needs £1,300 added to their provisions each year.
Aviva says the average gap for a 50-year old is below the national individual average because the data is skewed by the significant shortfall faced by those approaching 65 in the next few years.
Aviva UK Life chief executive Toby Strauss says: “It has long been said that there is a pension gap in the UK and beyond but this new study actually puts a figure on the shortfall. The findings are startling. This research should act as a wake-up call for individuals and governments across Eur-ope, particularly in the UK.”
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