Why even £1m might not be enough for retirement

Pension savers with even £1m in the bank are likely to be disappointed when they look to secure an income, says David Prosser.

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You only have a million? Oh dear

Would you feel well-off if you had £1m in the bank? Probably but pension savers who manage to put away that much by the time they retire are likely to be disappointed when they find out what £1m is worth when it comes to securing an income. At current annuity rates, a £1m pension fund would buy a starting income of just £20,860, according to insurance company Royal London.

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David Prosser
Business Columnist

David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.