A recent survey by Barings Asset Management has highlighted the huge gap between when people expect to retire in the UK, and when their finances will allow them to retire, with many in the UK seemingly delusional about their retirement finances.

The survey actually found that based on the current pension savings of those in the UK, one in ten will never actually retire, as they won’t be able to afford to do so.
Whilst some clearly have no idea, the number who have used a pension calculator is also clearly rising as the number of Britons who expect to retire between the ages of 66 and 71 grew to 11% from 5% in 2008, while the 31% majority in 2008 who thought they could retire between the ages of 56 and 60 has fallen to 11% as well.

A pension calculator allows the consumer to input their current pension savings, as well as their future planned savings and the calculator will predict, based on expected increases in interest rates, inflation and decreases in annuity rates, what your income will be in retirement, and how much more, or less you would need to save for your target income.

The state pension is certainly not enough to live off comfortably, and even the planned increases in state pension will not make a great difference. Using a state pension calculator now will show you how little those relying on the state pension have to live off.

Whilst people are now living longer, so retiring later seems to be becoming more acceptable, the things you can do in retirement will be limited the older you are. Travel insurance, and simple luxuries like hiring a car on your holiday become substantially more expensive and difficult over the age of 80, and many find that their bodies are just too worn out to carry out such activities anyway.

Whilst retirement may seem a really long way off, the best way to enjoy it is to prepare now, because the best chance of retiring at a sensible age and enjoying retirement will be created by putting aside extra money now, in line with a pension calculators recommendations, so that you can enjoy your retirement in the future.