40% of savers unsure how much to save for retirement

Only a minority (16 per cent) of UK employees are confident that the amount they are currently saving is sufficient for retirement, while 40 per cent of workers have little or no idea how much they need to save for retirement, according to research from Royal London.

The survey found that a further 46 per cent of savers are “fairly confident”, while a "significant proportion" (37 per cent) are not confident.

However, the research found that two fifths (43 per cent) of those who were confident they will have a secure income for the duration of their retirement are currently saving 5 per cent or less of their annual gross income.

In addition to this, Royal London warned that the 'set and forget' approach utilised by auto enrolment can leave many unsure of how much they’re currently saving, with 15 per cent unsure how much they and their employer are collectively contributing to their pension.

One in five (20 per cent) workers also admitted to having never checked their pension savings.

Royal London warned that while now might not be the right time, without a plan to increase pension savings levels in the future, today’s cost-of-living crisis could be repeated in retirement.

Royal London director of policy & external affairs, Jamie Jenkins, argued that it is "therefore crucial that we set out a clear plan to raise retirement saving to more adequate levels in future".

“Saving for later life through your employer may be embedded into the DNA of the UK pensions system, thanks to automatic enrolment, but we need to be realistic about setting the right level of saving to achieve the retirement people aspire to," she continued.

“For most people, saving at the minimum of around 8 per cent of their salary won’t be enough to give them the kind of retirement that they want.

"Older workers often look back on their working life with regret that they didn’t take more responsibility for their financial future sooner – either starting saving earlier or putting a bit more away than they did.”

“Starting to save for retirement as early as possible gives you the best chance of building up a bigger pot over as long a period as possible.”

    Share Story:

Recent Stories


Making pension engagement enjoyable through technology
Laura Blows speaks to Nick Hall, business development director and Chartered Financial Planner at UK-based Wealth Wizards about the opportunities that technology provides for increasing people’s engagement with pensions and increasing their retirement wealth. Please click here for an edited write-up of the video

ESG & DC – creating the right tools
In the latest of our series of Pensions Age video interviews Francesca Fabrizi, Editor in Chief of Pensions Age is joined by Manuela Sperandeo, Head of Sustainable Indexing EMEA, BlackRock and Mark Guirey, Executive Director, Asset Owner and Consultant Coverage - MSCI to discuss some key trends of ESG investing among UK pension funds today. Please click here for an edited write-up of the video

Savings and finance at retirement
Laura Blows is joined by Claire Felgate, Head of Global Consultant Relations, UK, at BlackRock, to discuss savings and finance at retirement. Please click here for an edited write-up of the video

Global sustainable credit
Laura Blows speaks to Royal London Asset Management senior fund manager, Rachid Semaoune, about global sustainable credit
Global equities and transition investing
Pensions Age editor, Laura Blows speaks to Royal London Asset Management equity investment director, Jonathan Price, about transitioning to sustainable investments within global equities

Advertisement Advertisement