Do you know how much you plan to retire on? Well, according to the latest survey by Prudential, who questioned around 7,000 individuals, found that 18% of respondents plan on retiring on a state pension and savings alone. The worrying aspect of this plan is that around a third of individuals didn’t know how much the state pension is or over-estimated the weekly allowance.

In addition, individual savings have dramatically reduced over the last few years according to a new survey by ING. They suggest that an average savings balance was in the region of £2,000 per individual, which is roughly one months salary. ING estimate that on average individuals are only saving about £40 per month.

When savings are compared to previous highs of  £20,000, one begins to wonder where is the difference coming from to fund one’s retirement? The answer probably is if one is looking to retire on a state pension and average savings the probability of sustaining their lifestyle is slim. Especially, when the Office of National Statistics suggests the weekly average expenditure of a retired person is in the region of £321 a week.  

Perhaps, individuals need to find other revenue streams in retirement. Typically, ones home is their biggest asset and source of funding through retirement. If this is the case for you, you will be happy to hear that according to the latest Nationwide Housing Index, house prices could increase by as much as 10% by the end of 2010. This could certainly act as a vital boost to your retirement fund and supplement the state pension and savings.