Pension calculator reveals exact amount you’ll have in retirement – and millions are £11,000 short
MILLIONS of people now pay into a pension every month, but they may not be saving enough.
Most people underestimate what they'll need for retirement, but how do you know if there's a shortfall?
A new handy tool could help you work out if you'll have enough to live the life you want in retirement.
HSBC's new , shows people the monthly amount they will need to live off in retirement based on their lifestyle and current contributions.
British adults face an average yearly shortfall of more than £11,000 after they retire compared to the lifestyle they want to live, the bank found.
It compiles data based on a number of factors, including how much money you want to spend in retirement, your current age and where you live too.
Read more in Pensions
For example, whether you'll use a car when retiring and how much you'll spend on shopping and if you want to go on regular holidays.
It then tells you whether you're on target to live your future desired lifestyle.
For example you'll need £36,700 a year to live off if you want a retirement with weekends away, £59 a week to spend on groceries and £730 on clothing and shoes if you're fashion conscious.
But if you're only putting away £100 a month in your pension at the age of 30, you'll be £24,000 short of this target, as you would be on track for a pension income of £12,700 a year.
Most read in Money
To reach the £36,700 target for that lifestyle, you would need to contribute roughly £1,100 a month.
Or you could retire at a later date and save for longer, if you're coming up short.
What if I want more help with my pension?
If you're looking for more help with your pension or you don't know how much to put away each month, the Pensions and Lifetime Savings Association has a set of .
They show people how much you need to put away each month if you want to live a certain type of lifestyle after retiring.
If you are earning over a certain type of money your employer has to automatically enrol you in a workplace pension scheme as well.
You have to be earning at least £10,000 a year to be enrolled.
If you can, you should stay in one as that will massively help boost your pension pot.
Even if you're young and it seems a long way away, stashing away some cash for later years is worthwhile.
Emma-Lou Montgomery, associate director for Personal Investing at investment management company Fidelity International, said contributing to a workplace pension was the "number one rule in pension planning".
READ MORE SUN STORIES
Read More on The Sun
She said: "Not only are contributions taken out of your gross salary beneficial from a ‘here and now perspective’ as they cut your tax bill, but they also attract the key benefit of pension savings - a nice little top-up from HMRC.
"And, now that employers have to add to the pot, they’re guaranteed to be even more worth your while, giving you additional money from your employer, over and above your salary."