A study carried out by insurers Royal London has suggested that UK workers will require a pension pot of ‘at least’ £260,000 to ensure a comfortable retirement.
In contrast, the total pension pot needed to secure an advantageous retirement in 2002 was £150,000, the study revealed.
It suggested that the increase can be partly attributed to lower interest rates and rising life expectancy.
Royal London also found that those renting could require a pension pot of £445,000 in order to ‘avoid a slump in living standards’ when they come to retire.
Commenting on the study, Helen Morrissey, Personal Finance Specialist at Royal London, said: ‘If our retirement pot is going to support us through a longer retirement and in an era of lower interest rates, we are going to need to build a much bigger pot than in the past.
‘For those unable to get onto the property ladder during their working life, a large private rental bill needs to be factored in to retirement planning.
‘We cannot afford to be complacent about current levels of retirement saving.’