How big is your pension pot?

March 14th, 2018

The average UK worker will need to build more than £300,000 into a pension to maintain their current lifestyle in retirement, according to January 2018 research by Aegon.

This figure is based on the average UK employee earnings of £27,000, as revealed by the government as part of its auto-enrolment review announced in December. The government also believes we should be targeting a retirement income equivalent to two-thirds of our working income – £18,000 a year, or £1,500 a month.

So an average earner, who would be entitled to £691 state pension a month, would need to generate a monthly income of £809 from their own private pension pots to meet this target.