A new estimate from wealth management firm Quilter reveals that UK individuals now need a pension pot of £691,000 to retire comfortably.
That figure assumes annual retirement spending of around £45,400, with no mortgage or housing costs, plus approximately £12,500 per year from the State Pension.
The sum is far beyond what most Britons have managed to save, and those retiring in future years will need an even larger pot to account for rising costs.
FTSE 100 shares have performed strongly in recent years, with many producing gains of 100%, 200%, or more over the past five years alone.
However, experts suggest that equities are only one part of the retirement savings puzzle, and a multi-pronged approach is likely to deliver the best results.
Tax-efficient accounts such as the Self-Invested Personal Pension (SIPP) can significantly amplify contributions, with a £1,000 deposit boosted to £1,250 for basic-rate taxpayers through government relief, with higher earners receiving even more.
Spreading investments across FTSE 100 shares, UK small-caps, international stocks, tech shares, and other asset classes can further reduce risk while improving long-term performance prospects.
Research consistently shows that a diversified global portfolio has historically outperformed the FTSE 100 index on its own over extended investment periods.
One FTSE 100-listed option attracting attention is Polar Capital Technology Trust (LSE: PCT), an investment trust focused entirely on the global technology sector.
Rather than a single company, PCT holds around 100 different publicly-traded businesses, including major names such as Nvidia, Alphabet, and AMD in its current portfolio.
Approximately 60% of the trust’s portfolio is allocated to the United States, while around 25% is directed toward Asia and Japan, providing broad geographic diversification.
Over the past decade, the trust has returned more than 25% per year, compared to roughly 7% annually for the FTSE 100, though past performance is not an indicator of future returns.
The trust offers investors exposure to long-term structural trends including artificial intelligence, self-driving vehicles, and broader digital transformation across the global economy.
A further practical advantage is that PCT can be traded just like ordinary shares, allowing investors to act quickly and take advantage of intra-day price movements.
Technology stocks are known for their volatility, so gradually accumulating shares in the trust during dips may be a more prudent strategy than committing a large sum all at once.
For Britons serious about closing the retirement savings gap, combining tax-efficient accounts, broad diversification, and targeted exposure to high-growth sectors like technology could represent a powerful long-term strategy.