More than half of Belgians do not know how much they need to save to maintain their desired standard of living in retirement, according to new research from insurer NN Belgium.

The findings, published in NN's Financial Peace of Mind Barometer, showed that 54 per cent of Belgians aged over 35 and not yet retired do not know how much additional monthly retirement income they will need beyond their statutory pension to live comfortably.

The research also revealed that while 54 per cent of respondents said they have a rough idea of the level of state pension they are likely to receive, many remain uncertain about the amount of supplementary retirement income they will require.

According to NN, this uncertainty means many people are saving without a clear objective and cannot assess whether they are on track to achieve their retirement goals.

Commenting on the findings, NN longevity expert, Colin Sanders, said: “Many people are saving somewhat blindly without a clear goal. As long as the target amount remains unknown, you also do not know whether you are on track.”

The survey suggested the issue becomes more pronounced as retirement approaches. Among respondents aged 35 to 49, 52 per cent said they did not know how much they needed to save for retirement, rising to 56 per cent among those aged 50 and over.

NN argued that understanding the level of additional monthly income required in retirement is a crucial first step in determining long-term savings needs.

Sanders said: “This amount per month that people need for a comfortable life is the basis for calculating how much they need to save for retirement.

“Once you make that amount concrete, the gap also becomes bridgeable.”

To illustrate the challenge, NN highlighted that an individual seeking an additional €1,500 per month on top of their statutory pension from age 67 to age 90 would need retirement savings of around €414,000.

The insurer encouraged individuals to make greater use of pension forecasting tools and seek professional financial advice to better understand their retirement income needs and develop appropriate savings plans.

As part of the report, NN also outlined a six-step process to help individuals define their retirement goals, assess their existing savings, calculate future requirements and establish a long-term savings strategy.

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