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Cash flow in retirement will determine your wealth not your net worth
(Private sector employee) – average income expectation at retirement £24,370 (Scottish Widows) this is double the actual average at age 65 (of £13,000). [If we assume that state retirement pension is £155.65 per week/£8093 per annum then to achieve income of £24,370 overall using flexi-access drawdown a pension fund of c£325,000 would be required (assuming a 5% monthly withdrawal].
(Barclays surveyed 2,000 employees who are currently paying into a workplace ‘defined contribution’ pension scheme).
The bank calculated that people would need an annual income of £17,500 in retirement to maintain a decent lifestyle. To be able to achieve this income, an employee would need to save a pension pot of £350,000 using flexi-access drawdown to achieve this.