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- Last Updated
- 72 days ago
- Bias Distribution
- 100% Left
Pre-Retirees Face £18,000 Annual Retirement Income Gap UK-Wide
Recent analyses reveal a significant gap between retirees' income expectations and the financial resources available to meet those needs. In the UK, retirees aged 40-75 expect an average income of £30,525 annually, but the State Pension only provides about £11,973, leaving an annual shortfall of approximately £18,552 that must be filled through savings or additional benefits. In the U.S., the average retired household spends around $65,000 annually, with housing, transportation, and utilities comprising the majority of expenses. Despite common benchmarks like the 4% rule for retirement spending, many Americans' savings fall short; for example, the average 401(k) balance for retirees is around $250,000, which would generate about $10,000 a year under standard withdrawal rates—insufficient for most households. Experts recommend focusing on income replacement ratios rather than lump sums, aiming to replace 75% to 85% of pre-retirement income, factoring in Social Security benefits which typically cover about 40%. Overall, retirees should prepare for higher-than-expected expenses and consider tailored strategies to bridge income gaps and sustain their desired lifestyles.

- Total News Sources
- 1
- Left
- 1
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- 0
- Right
- 0
- Unrated
- 0
- Last Updated
- 72 days ago
- Bias Distribution
- 100% Left
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