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&#39Cut out pint of beer for a better pension&#39

Current levels of pension savings will leave people with a retirement income of less than £4,000 a year, according to research from HSBC.

The company found that 68 per cent of people with a pension plan are contributing less than £100 a month and 24 per cent are only saving £50 or more.

It says this will provide a retirement income of just £3,962 a year for a 30-year-old hoping to retire at 60.

The aim of the research was to find out what people hope to do in their retirement. Over 70 per cent want to take more holidays and 56 per cent of people would like to play more sport.

Around 27 per cent would like to buy a second home in the UK or abroad and 25 per cent intend to undertake further education such as learning a foreign language.

But HSBC says these retirement dreams will be unfulfilled because people are not putting enough money into their pensions.

The study was cond-ucted among a sample of more than a 1,000 people in August 2001 but the results were only published last week.

Head of life and pensions Harpal Karlcut says: “We all dream of relaxing on a beach or the golf course after we retire but the painful truth is that few of us are saving enough to turn dreams in to reality.

“A small amount of money now could make a big difference when you retire. For the cost of a pint of beer a day, a 30-yearold could get an income in retirement of £17,400 a year.”

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