The U.K. Pensions and Lifetime Savings Association is consulting the retirement industry to develop a set of new national retirement income targets to help plan participants save adequately, the association said Wednesday.
The association will work with the U.K. government and the industry to identify how much is needed to save to ensure the right income in retirement. The PLSA will define the target and solutions that will help to achieve the right targets. It is consulting on measures such as changes to contribution rates, the scope of automatic enrollment and retirement age.
The PLSA also on Wednesday published a report titled "Hitting the Target," which found that 78% of people aged 18 to 64 said they were not sure or did not know where to look to tell if they were on track with their retirement savings.
Graham Vidler, director of external affairs at the Pensions and Lifetime Savings Association, said in a news release: "We all know we need to save for retirement but few of us know how much we might need to live on or whether we are on track to hit that target."
"As part of this, we are asking difficult questions which need to be answered to help more people make the right choices around retirement. We are also looking to develop a new set of retirement income targets that will empower savers by providing tangible targets for them to achieve," Mr. Vidler said.