The average Briton would need a pension that worked out as the equivalent of two-thirds of their current salary in order to enjoy the same type of lifestyle in their later years, one sector commentator has claimed.
Adrian Lowcocks, senior investments advisor for Bestinvest, said the idea of a pension was to provide them with the same standard of living that they may have been used to when they were in employment.
"Usually people suggest about two-thirds of your salary would provide for the same standard of living during retirement; that is a good guideline of how much you would need to save up in a pension to provide you with an income if you took five or four per cent yield on a pension," he explained.
Mr Lowcocks concluded that this would give people an idea of how much they would need to save for their pension pot in order to maintain their current lifestyle.
Recent research by uSwitch.com has revealed that almost half of Britons (42 per cent) have cancelled insurance or pension contributions in a bid to cut household expenditure and ease financial pressures.