The Pensions and Lifetime Savings Association (PLSA) has proposed a national retirement income target to help savers reach a decent retirement income.
The PLSA said previous research it has carried out suggests 13.6 million workers are at a high risk of failing to achieve an adequate level of income in retirement.
Jamie Clark, business development manager at Royal London intermediary pensions, said: “The idea of a national retirement income target seems sensible and if it forms part of a strategy that helps and encourages people to engage with their savings, then it can only be a good thing.
“There will still be challenges of course. In particular, people need to understand that they need to review their savings regularly to make sure that they remain on track and that their desired level of retirement income when they take their benefits will be sustainable.
“Financial advisers will normally provide these services to their clients and taking impartial financial advice has been shown to help people achieve good outcomes.”
