New research has shown that British people tend to retire with a lot less money than they had originally planned, according to a study by the investment group Schroeders.
On average Brits are retiring on around £17,200 per year, which is £4,700 less than people are said to require. A third of all Brits have dipped into their savings and used around £7,000 to supplement their yearly income in the last 12 months.
Some of the reasons for these dwindling savings are thought to be all time low interest rates and poor returns from savings accounts. Ironically the deputy governor of the Bank of England, Charles Bean, recently told British people to stop moaning about bad returns and actually spend more money in a bid to aid the economy.
Robin Stoakley, a managing director at Schroders, said: “Rising living costs and the potentially corrosive effects of inflation on annuities means that more people are supplementing their income with other investments. Despite this, there is a £160 billion void between anticipated retirement income and reality, which means that more retired people are dipping into their long-term savings just to make ends meet.”