UK lawyers are warned that they are waiting too long to start saving up more for their retirement.
According to a new study by specialist mutual Wesleyan, most lawyers in the UK face almost £10,000 (about $16,700) per year shortfall in pension they deem sufficient to support themselves in retirement.
On average, lawyers in Britain say they need approximately £36,852 per year (about $61,467) in order to live comfortably during their retirement, says a Global Legal Post report.
However, when asked how much money they are saving every month, lawyers averaged just £1,042 (about $1,738) or just over £12,500 per year (about $20,850).
When that amount is spread over 20 years or when lawyers reach their average retirement age of 58, the saving equate to £27,539 per year (about $45,934) in retirement income, nearly £10,000 less than what UK lawyers said they needed to live comfortably in retirement.
The study also found that, on average, lawyers don’t start topping up their retirement savings above their basic workplace pension contribution until the age of 29.
Wesleyan warns that lawyers who wait until 29 to start increasing their savings will need to put away £1,523 per month (about $2,540) for the rest of their careers in order to reach the £36,852 per year pension target.
“Our research tells us that failing to save early enough if one of the biggest financial regrets, so it’s imperative that people start saving earlier to avoid a shock later in life,” says Vicki Wentworth, Wesleyan’s customer and strategy chief.
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