Gen X should target retirement savings of over £375,000

Generation X must build retirement savings of £375,676 in order to live comfortably after retirement, according to Blacktower Financial Management Group.

Its report found that saving this amount, which is the equivalent of £8,348 per year between the ages of 24 and 68, would give Generation X a retirement income of £26,834 per year.

The report said that, to stay on track for a stress free and happy retirement, Millennials should have put away more than £70,000 by the time they reach their early thirties.

Meanwhile 25-year olds with an average of just a year of full-time work should have saved £15,745.

However, Blacktower added that most Britons under the age of 30 had only saved around £1,000 for retirement.

Its study assumed that the retirement age would increase to 68 and life expectancy would rise to 82.

London was top UK city for cash saving residents, with over 14 per cent having saved the target amount of £375,676 for retirement, with Southampton and Edinburgh following close behind.

The three cities with the lowest proportion of residents to have saved this amount were Norwich, Belfast and Newcastle.

The English capital also had the smallest percentage of people who had saved nothing towards retirement, with a quarter (25 per cent) of residents having made no preparations.

Alternatively, Belfast beat challengers Cardiff and Leeds to come out as the city with the largest proportion of people who had no pension savings, with almost half (49 per cent) of residents having saved nothing towards their retirement.

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