For immediate release
The UK’s average pension pot stands at just £42.7k – 18% of the recommended total
Non-retirees in the UK have £33,809 saved A fifth (19%) of the population have no private or workplace pensionsMen have an average £62,336 saved in their pension, while women have just £22,735 in comparison – 64% less
6 July, 2021, LONDON –
A survey conducted by the personal finance comparison site, finder.com, has found that the average pension pot in the UK stands at just £42,651.This figure drops even further for non-retirees, who only have £33,809 saved on average.
With one pension specialist 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.Even more concerning was that a fifth of the population (19%) say they have no form of private or workplace pension. A further 18% have a workplace pension but no private pension.
The survey revealed a very worrying discrepancy in pension amounts for men and females. On average, men have £62,336 saved in their pension, while women have just £22,735 in comparison – 64% less.
In terms of age breakdowns, Millennials have £17,175 saved on average, and, as you would expect, these totals rise along with the generations. Gen X’ers have £35,175 saved, while baby boomers have £61,546 in their pension pot. Despite many of them being retired, the average amount saved for the silent generation is only £111,855.
When it comes to not having a pension, it is actually the older generations who appear less likely to have a workplace or private pension – relying on just a state pension to live off. 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. These figures drop to 15% for Millennials and 19% for Gen X.
Zoe Stabler, Investment Writer at the personal finance comparison site, finder.com, said: “The pandemic has been extremely tough for Brits in many ways, with a lot of people having to take unprecedented steps in order to stay afloat financially. It is understandable that some Brits have reduced, or paused, payments in order to direct money to more immediate priorities.
“However, if you are someone who has had to do this, it is vital that you look at replacing this money or at least starting to pay into your pension again. The power of compound interest means that what you pay in now could be a life changing amount if you’re able to leave it for decades. As an example, £10,000 paid in 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**.
“Also, if you opted out of your workplace pension in order to save money during the pandemic, you should look to rejoin it as soon as you can. If you contribute 5% of your salary each month towards it, your employer is obliged to pay a minimum of 3% on top of this, which is effectively free money topping up your pension!”
To see the research in full visit: https://www.finder.com/uk/pension-statistics
The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com's review pages for the current correct values.
finder.com is a personal finance website, which helps consumers compare products online so they can make better informed decisions. Consumers can visit the website to compare utilities, mortgages, credit cards, insurance products, shopping voucher codes, and so much more before choosing the option that best suits their needs.
Best of all, finder.com is completely free to use. We’re not a bank or insurer, nor are we owned by one, and we are not a product issuer or a credit provider. We’re not affiliated with any one institution or outlet, so it’s genuine advice from a team of experts who care about helping you find better.
finder.com launched in the UK in February 2017 and is privately owned and self-funded by two Australian entrepreneurs – Fred Schebesta and Frank Restuccia – who successfully grew finder.com.au to be Australia's most visited personal finance website (Source: Experian Hitwise).