Mind pension reality gap, warns Sun Life
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High net-worth customers may have the biggest expectation gap between what they have saved for retirement and the size of pension they will receive, according to Sun Life Financial of Canada.
The company says while the wealthiest sections of society are more likely to seek financial advice, the mass affluent are more likely to overestimate their retirement income.
Sun Life Financial’s report, Sense Check at 60, asked 1,000 consumers at or approaching retirement age with at least £100,000 of pension assets about their attitudes to finance and retirement.
Fifty-seven per cent had seen a financial adviser in the last 12 months but the firm suggests that many people still have unrealistic expectations for their pension income.
The report reveals that 49 per cent of people expect a pension of between £20,000 and £40,000. However, 59 per cent have pension funds of less than £300,000 and it would take savings of £600,000 to provide an income at the lower end of this target range.
Head of marketing Mark Stopard says: “This group of savers have amassed very respectable funds but there is a reality gap in terms of retirement income levels they expect and are likely to achieve.”
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