Pension statistics: What is the average pension pot in the UK?

Have you ever thought about what you’ll do with your life when you’re done working? It’s never too early to start thinking about saving for retirement or comparing pension options. We commissioned some research to see how much Brits have saved in their pension pots.

What is the average pension pot in the UK?

The average pension savings in the UK stand at just £35,357 per person in 2023, including both retired and non-retired adults. This is down from an average pension pot of £42,651 in 2021, a decrease of 17%.

To enjoy a moderate standard of living on retirement at age 66 in 2023, it is recommended to have £285,000 saved in total. However, the average UK adult has only 12.4% of this saved in their pension pot.

How many people have a pension?

Less than two-thirds of adults (58%) stated that they had pension savings in our survey. Almost 1 in 5 adults (18.4%) either do not have a pension of any kind or have nothing saved into their pension, which is estimated to be 9.7 million people. A further 16% of people are unsure how much they have saved in their pension.

What is the average UK pension pot at retirement?

According to our survey results, retired people have £69,481 saved in their pension pot on average. This is approximately a quarter (24.4%) of the recommended UK retirement income for a moderate standard of living, which is £285,000.

What is the average pension pot by age?

As you would expect, the average amount in a pension pot increases with age because those saving regularly accumulate more savings over time, as well as earning interest. 18-24 year-olds have just £10,303 saved, while those aged 55 and over have £64,354 saved.

• Graph
• Table

The gender pension gap

Our survey found that men have far more saved in their pension on average than women, at £42,892 compared to £26,691. This means that men have over 1.6 times more in their pension.

The gender pay gap is likely to have something to do with this, as it currently stands at 14.9% among all employees. Other possible reasons for the gender pension gap include time taken away from work for childcare and other caring duties and more women undertaking part-time work.

What is the average pension pot by region?

The area with the biggest average pension is Northern Ireland, with an impressive £47,455, which is over £12,000 higher than the UK average. Meanwhile, Scotland residents have an average pension pot of just £25,052, which is over £10,000 less than the UK average.

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• Table

What is the average pension pot by generation?

As with different age groups, the average pension pot increases as the generations get older. While generation Z has just £11,291 in its pension pot on average, the silent generation, who are aged 74 and over, have a far more significant £97,008.

The effect of compound interest if you continue to pay into your pension means that the savings will increase more significantly between older generations as a larger amount of interest is earned on a bigger pension pot.

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• Table

How many people stop pension contributions?

Almost half (47%) of UK adults have stopped paying into their pensions at some point, and a further 11% of adults are considering doing so at some point, meaning a total of 58% have stopped or intend to stop pension payments.

Why do people stop pension contributions?

The most common reason among those who have stopped paying is due to the rising cost of daily expenses and bills, followed by the rising cost of rent or mortgage payments.

Other common reasons for stopping pension payments include paying off debt, having money for a holiday or other big purchases, or having money to give to your children or other important people in your life. Some people also stop paying into their pension due to illness or changing jobs.

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• Table

Pension projections with auto-enrolment

We projected how the average private pension for someone currently aged 22 would grow over time based on the current average salary for each age group and across genders.

It found that the average person would have a pension pot of around £281,000 if they were auto-enrolled at 22 and retired at 68. However, there is a substantial difference between men and women, with women having around £218,000 and men having over £318,000 – a gap of £100,00 at retirement.

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What annual income would the average pension give you?

If current trends continue, a private pension on the average salary plus state pension would give you around £22,800 a year after tax, or £1,900 a month. This is assuming you take the 25% tax-free lump sum at retirement and split this equally for your yearly spending, and that you live until 87.5 – the average life expectancy for someone currently aged 22.

However, recent research suggests that, in today’s money, £31,300 is needed for a moderate standard of retirement for a single person, over £8,000 more than the projections would give you. A single person needs £43,100 a year for a comfortable retirement, which includes enough for gifts and an annual holiday to Europe, but the projected pension savings today would give you over £20,000 less than this number.

The projected average private pension pot on retirement is lower for women, and their life expectancy is longer, at 89 years for someone currently aged 22. This gives them a lower yearly income of around £19,800 after tax. This is a shortfall of £11,500 a year for a moderate retirement and over £23,000 a year for a comfortable retirement.

The yearly retirement income is higher for men, at an estimated £25,300, but this still falls £6,000 short of what is needed for a moderate retirement and almost £18,000 a year short of what is needed for a comfortable retirement based on today’s conditions.

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The projections are based on current economic conditions and estimate what could happen to private pensions if current salary and living costs trends continue. The projected figures are in today’s money rather than adjusted for inflation to make it more relatable to current experiences.

• Pension statistics 2021

  Key statistics

  We commissioned research to find out just how prepared Brits are for retirement.

  • The UK’s average pension pot stands at just £42,651
  • This figure makes up just 18% of the recommended total of £237,000 for those retiring at age 67
  • 19% of the population (a fifth of all Brits) say they have no form of private or workplace pension
  • A further 18% of the population have a workplace pension but no private pension

  What is the average pension pot in the UK?

  We conducted a survey across the UK to find out how much Brits currently have saved in their pension pots. Our findings revealed that the average pension pot in the UK for all Brits (both retired and non-retired) stands at just £42,651.

  With pension specialists recommending that someone retiring at 67 should have at least £237,000 saved for a “comfortable” retirement, this means that the average Brit’s pension stands at just 18% of this figure. The more worrying findings from our survey revealed that 19% of the population say they have no form of private or workplace pension. This equates to about a fifth of the nation having no pension at all. A further 18% have a workplace pension but no private pension.

  Meanwhile, non-retired Brits have just £33,809 saved in their pension pot – £203,191 less than the recommended amount for a comfortable retirement, according to Profile Pension’s pension calculator.

  Find out how your pension compares to the rest of the UK's

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  The amount in your pension pot is currently the national average as at 2021.

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  • How many people have a pension?
  • Table

  	Percentage of population	Number of Brits
  Have a pension	81%	42,446,709
  Have no pension	19%	9,956,635

  Effects of pension withdrawals

  A fifth of the population currently has no form of private or workplace pension, which could be for varying reasons. Some may have chosen to opt out from their workplace pension if they were in a situation where their finances would immediately benefit from the extra money. Alternatively, a loss of employment may have affected their access to it. Many Brits may have also taken similar steps with their private pension to stay afloat during the pandemic – this includes reducing, pausing or stopping payments altogether.

  However, it should be noted that the long-term effects of taking such action can be grave if that money isn’t replaced. Considering the effects of compound interest, any amount paid into a pension pot today could be worth thousands more in just a few decades. As an example, £10,000 paid into a pension pot now, earning an interest rate of 5% per year, would be worth £25,330 in 20 years, £41,259 in 30 years and £67,207 in 40 years. The graph below demonstrates this increase over a period of 70 years.

  • Graph
  • Table

  Years	Pension payment
  1	£10,500
  2	£10,525
  3	£11,051
  4	£11,604
  5	£12,184
  6	£12,793
  7	£13,433
  8	£14,105
  9	£14,810
  10	£15,550
  11	£16,328
  12	£17,144
  13	£18,001
  14	£18,901
  15	£19,846
  16	£20,839
  17	£21,881
  18	£22,975
  19	£24,123
  20	£25,330
  21	£26,596
  22	£27,926
  23	£29,322
  24	£30,788
  25	£32,328
  26	£33,944
  27	£35,641
  28	£37,423
  29	£39,295
  30	£41,259
  31	£43,322
  32	£45,488
  33	£47,763
  34	£50,151
  35	£52,659
  36	£55,291
  37	£58,056
  38	£60,959
  39	£64,007
  40	£67,207
  41	£70,568
  42	£74,096
  43	£77,801
  44	£81,691
  45	£85,775
  46	£90,064
  47	£94,567
  48	£99,296
  49	£104,260
  50	£109,473
  51	£114,947
  52	£120,694
  53	£126,729
  54	£133,066
  55	£139,719
  56	£146,705
  57	£154,040
  58	£161,742
  59	£169,829
  60	£178,321
  61	£187,237
  62	£196,598
  63	£206,428
  64	£216,750
  65	£227,587
  66	£238,967
  67	£250,915
  68	£263,461
  69	£276,634
  70	£290,465

  Pensions by gender

  The most surprising statistics are seen in comparisons by gender, where the survey also revealed a discrepancy in pension amounts for men and women. On average, men who have not yet retired have £62,336 saved in their pension pot, while women have just £22,735 saved – 64% less.

  Some reasoning behind this disparity can be attributed to the differences in salary between men and women. Despite the gender pay gap among all employees reducing from 17.4% in 2019 to 15.5% in 2020, this still means that when even the minimum pension contribution of 8% is applied to earnings by gender, women accumulate less in their pension pot. Women also make up the majority of part-time employment in the UK. In December 2020, 38% of women were working in part-time employment, compared to just 13% of men.

  • Image
  • Table

  	Men	Women
  Average amount in pension	£62,336	£22,735

  Pensions by generation

  In terms of age breakdowns, millennials have £17,175 saved on average. As you would expect, these totals rise along with the generations. Gen X has £35,175 saved, while baby boomers have £61,546 in their pension pot. Despite many of them being retired, the average amount saved by the silent generation is only £111,855.

  Millennials understandably lead the way, with 21% and 15% not having a pension. However, the figure remains high for gen X (19%) as well. Despite many people within these demographics being retired, a staggering 22% of baby boomers and 30% of the silent generation said they did not have a workplace or private pension. This would leave them with just a state pension to live off.

  • Graph
  • Table

  Generation	Amount saved
  Millennials	£17,175
  Gen X	£35,175
  Baby boomers	£61,546
  Silent generation	£111,855

• Previous research: Pension statistics 2020

  Have you ever thought about what you’ll do with your life when you’re done working? Do you see yourself spending your days in a big house in the English countryside, sipping cold drinks on a Spanish beach or running off somewhere more exotic?

  It’s never too early to start thinking about how to save for one’s retirement and to compare pension options. Depending on whether you also need to pay the rent and what you want your final years to look like, it may take more money than you think to live life comfortably. We commissioned some research to see how much Brits know about their pensions.

  Key statistics

  To understand how much the UK population knows about pensions, we commissioned research to find out just how clued up Brits are about their savings for retirement.

  • 35% of the adult population say they don’t have a pension.
  • 43% of the population admit they don’t know how much they will need.
  • Over half (55%) of people estimate that up to £100,000 is enough to retire comfortably.
  • Only 28% of people think they are on track to meet this.
  • The recommended amount for a comfortable retirement is £260,000–£445,000, depending on accommodation costs.

  • How many people have a pension?
  • Table

  Pension status	Percentage
  Have pensions	33.40%
  Say they don't have a pension	18.40%

  The coronavirus pandemics effect on pensions

  During the coronavirus pandemic, most pension funds have decreased in value. With 950,000 benefits claims in a fortnight, the number of people getting laid off by their employees is skyrocketing. Unemployment rates are anticipated to rise from the current 3.8% to 4.1% by 2021, when the pandemic hopefully is over as well as some Brits coming back into employment. This will impact the amount Brits can put into their pension funds that are already low, as only 25% think they have enough to stop working completely with their retirement.

  Despite automatic enrolment workplace pensions being put in place in the UK, only 65% of our survey respondents said they had a pension, equating to 33.4 million people. This means 35% of people, in other words, 18.4 million Brits, either have no pension or are unaware that they have one. Of those who said they did have one, 36% weren’t sure how much was in it.

  How well could people estimate the size of a good pension?

  When asked to estimate what a healthy pension pot looks like, 43% of people said they didn’t know. Of those that did estimate, the average response was £174,000, and 55% of people thought up to £100,000 would be enough. This is significantly below the amount recommended by Royal London: £260,000–£445,000.

  Age differences

  The table below shows some of the key differences we found in responses based on age group.

  	Millennials	Gen X	Baby boomers
  Percentage of population who say they don’t have pension	55%	33%	24%
  Percentage of population who are not sure how much pension they have	32%	44%	32%
  Average estimated amount in current pension	£9,912	£60,135	£111,427
  How much people think they need to retire comfortably	£126,405	£188,291	£211,820
  Percentage of population who think they are on track to achieve their minimum pension amount	20%	25%	41%
  Percentage of people who think 50k is enough to retire comfortably	32%	25%	19%
  Actual amount needed for a comfortable retirement for those still renting	£445,000	£445,000	£445,000

  Pension predictions by age group

  • Pension predictions
  • Table

  Generation	Estimated current pension	Average predicted amount needed	Actual amount needed
  Millennials	£10,000	£126,000	£445,000
  Gen X	£60,000	£188,000	£445,000
  Baby Boomers	£111,000	£212,000	£445,000

  As you might expect, pension estimates varied by age, with older age groups predicting what they’ll need more accurately. In fact, almost a third (32%) of millennials thought up to just £50,000 would be enough. Even the oldest age group was underestimated by over £60,000, or even more than this if they’re still renting or paying off a mortgage.

  Do people feel on track to save up a good pension?

  Disturbingly, the majority of people in every age group did not feel on track to have a good pension by the time they retire. This is even more concerning when you consider that most of their estimates of what they’ll need were significantly below the recommended figure.

  Gender differences

  	Male	Female
  Percentage of population who don’t have pension	32%	39%
  Average estimated amount in current pension	£70,000	£45,000
  How much people think they need to retire comfortably	£169,000	£178,000
  Percentage of population who are not sure how much pension they have	31%	42%
  Percentage of population who think they are on track to achieve their minimum amount	34%	22%

  Estimated current pension compared to predicted amount needed

  • Pension predictions
  • Table

  Gender	Current pension	Predicted amount needed for comfortable retirement
  Male	£70,000	£169,000
  Female	£45,000	£178,000

  It seems men, in general, are more likely to meet their pension requirements than women, with the average male participant of our study having an estimated £70,000 in his pension pot, compared to £45,000 in the average woman’s. This is despite women having a higher, and therefore more accurate, prediction of what a good pension should be, at £178,000, £10,000 more than the average man’s prediction.

  “It’s often not a priority at a younger age, but the cost of retirement for millennials is something to be prepared for, especially as this generation is also expected to contend with the cost of rent or a mortgage on top of the general cost of living in their retirement. It’s also concerning to learn that so many baby boomers are still yet to look into it. Our study revealed that almost a quarter (24%) of this generation do not yet have a pension.

  Employers must legally provide a workplace pension in the UK, so it’s important that employees in the UK know what they’re eligible for and look into a private pension to top up their pot.”

  – Jon Ostler, UK CEO at finder.com

  Methodology

  We calculated these figures using a survey of 2,000 British adults commissioned by finder.com and conducted by research provider OnePoll in June 2018.

  Recommended pension sizes are based on analysis by Royal London.

  Methodology

  Finder commissioned Censuswide to carry out a nationally representative sample of 2,000 people throughout Great Britain at the end of April 2021, with representative quotas for gender, age and region.

  The future projections were calculated by taking the amount of £10,000 and applying 5% interest each year, and the comfortable retirement amount of £237,000 at the beginning of retirement (aged 67) was taken from the Profile Pensions pension calculator.

  Sources

  • ONS
  • House of Commons

• Pension reliance research 2020

  What do your retirement plans look like? Do you plan on spending time with your family, travelling far and wide or enjoying what the British countryside has to offer?

  Whatever your plans, it’s never too early to start thinking about your pension. With the rising cost of living and salaries staying put, it’s becoming harder and harder to save for your retirement.

  Because of this, we commissioned some research to see how comfortable Brits felt about their retirement, and whether they expect to have to top up their pension with other funds.

  Quick overview

  • Only one in five people in the UK (22%) think they will be able to live comfortably on their pension.
  • A quarter (25%) don’t know if their pension will be enough to support them through their retirement.
  • 24% of Brits plan to boost their income using funds in savings accounts, premium bonds or cash ISAs, making this the most popular measure to take.

  Are Brits confident in their pension?

  Only one in five Brits (22%) think they will be able to live off their state and private pensions. On the other hand, half (50%) believe they will need to supplement their pension, while a quarter (25%) don’t know if their pension will be enough to live on.

  • Standard
  • Table
  Ability to survive off their pension	Percentage
  Can rely on their pension	22.40%
  Can't rely on their pension	49.90%
  Don't know	24.70%
  Other / Not applicable	3.00%

  The most common action Brits are planning on taking to boost their pension is to use money from savings accounts, premium bonds or cash ISAs. 24% of Brits plan to do this. In second place is obtaining some form of employment, with 21% of Brits intending to do this. Following this, 1 in 10 (12%) plan on moving house when they retire to release some money to live off for their retirement.

  • Additional income
  • Table
  Additional incomes	Percent
  Plan to also work part-time	20.85%
  Plan to also rely on savings	23.90%
  Plan to also rely on share market investments	10.20%
  Plan to also downsize their home	12.45%
  Plan to also rely on a second investment property	7.60%
  Plan to also rely on an equity release (loan) on their property	5.40%
  Plan to also have their children or family to support them financially	5.50%

  Gender differences

  Men appear to be more confident in being able to live off their pension than women, with 28% saying they will be able to do so comfortably. This is 11 percentage points more than women (17%).

  Over half of women (52%) feel they can’t rely on their pension, compared to just under half of men (48%). More women than men don’t know if their pension will be enough to live off (28% vs 21%).

  • Gender differences
  • Table
  Gender	Can rely on pension	Can't rely on pension	Don't know	Other / Not applicable
  Men	27.96%	47.61%	21.10%	3.33%
  Women	17.24%	52.03%	28.03%	2.70%

  Regional differences

  Almost two-thirds of Londoners (62%) assume that their pension will need to be supplemented with extra income, making this the region where the highest number of residents expect to do so. On the other hand, only two in five (42%) in the North West intend to do this.

  • Regional differences
  • Table
  Region	Percentage that can't rely on their pension
  South West	45.50%
  South East	55.28%
  East of England	51.39%
  West Midlands	46.07%
  East Midlands	46.89%
  Yorshire and the Humber	45.67%
  North West	42.15%
  North East	50.62%
  Wales	47.12%
  Scotland	49.39%
  London	62.39%
  Northern Ireland	46.66%

  Generational differences

  The silent generation is having a far more comfortable retirement than the other generations expect to have, with only 28% of those born between 1925 and 1945 subsidising their pension. On the other end of the spectrum, millennials are not so certain that their retirement will be as easy, with 58% of this generation expecting to have to enhance their pension in some way.

  • Generational differences
  • Table
  Ability to survive off their pension	Generation Z	Millennials	Generation X	Boomers	Silent generation
  Can rely on pension	8.87%	13.13%	14.60%	36.93%	41.67%
  Can't rely on pension	42.74%	57.51%	55.83%	42.09%	28.33%
  Don't know	44.35%	27.29%	27.73%	16.81%	23.33%
  Other / Not applicable	4.04%	2.07%	1.84%	4.17%	6.67%

  Having enough in your pension has long been a concern for many Brits, with the cost of living outpacing salary growth over the past 10 years. Even still, it’s a shock to see just a fifth of the population saying that they will be able to live solely off their pension.

  The purpose of retirement is to eventually stop working, so it’s also a worry to see one in five adults believing that they will need to continue some form of employment to pay the bills. We can expect to see this trend grow over time, along with needing money from children or relatives, which highlights how important it is to start saving early.

  On top of this, Brits now have to contend with coronavirus, which has caused a sizable decline in most people’s investments. However, for generations who are still saving for their pension, it is actually a great time to kick start it while the market is down.

  ”

  Tips

  If retirement is still many years away for you, here are some tips to get your pension looking healthy:

  • Unless you absolutely have to, don’t opt out of your automatic workplace pension. Your employer is obliged to contribute a minimum of 3% of your income, while you put in 5%, so by opting out, you would be forgoing this “free” money. We looked into this, and someone earning the average UK salary (£29,669) who stays in the automatic pension scheme will see their pension worth £92,057 after a 30-year saving period. This is almost £64,000 more than if they just kept the cash.
  • You can also provide a huge boost to your pension by starting to save as early as possible. Compound interest means the amount earned on interest becomes more and more substantial as time goes by, so putting a lump sum in your pension just a few years earlier can make a huge difference.
  • If you find yourself with some spare cash or you get a pay rise, place the extra money into savings. Once you’ve built up some savings, place that money into your pension pot. Now is an especially good time to do so as the market has lost a lot of value because of coronavirus. If you’re wondering how much you should be putting into your pension, why not take the age that you start your pension and halve it. This is a sensible percentage of your pre-taxed salary you should put into your pension each year until you retire.

  Methodology

  • Finder commissioned Onepoll on 4-6 March 2020 to carry out a nationally representative survey of adults aged 18+.
  • A total of 2,000 people were questioned throughout Great Britain, with representative quotas for gender, age and region.

Click here for more research. For all media enquiries, please contact:

Matt Mckenna
UK Communications Manager
T: +44 20 8191 8806


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