Concerns over pension adequacy have continued to grow, with research from Hargreaves Lansdown revealing persistent pension gaps affecting renters, single people, the self-employed, and higher earners.

The firm’s Savings and Resilience Barometer showed that 32 per cent of renters, 36 per cent of single individuals, 36 per cent of self-employed people, and 41.5 per cent of the top 20 per cent of all households are on track to secure an adequate retirement income.

This compares to last month’s findings, where 36 per cent of self-employed households were on track and around 40 per cent of higher earners were.

Hargreaves Lansdown head of retirement analysis, Helen Morrissey, highlighted the findings as a demonstration that many could be doing more to boost our retirement resilience.

"However, there are groups who are experiencing even more of a struggle saving for later life and could be in for a nasty shock," she added, emphasising the need for these groups to understand the importance of thinking about what they want their retirement to look like to get a sense of how much it might cost so they can plan accordingly.

Morrissey warned high earners believe that the amount they are currently contributing is enough and do not realise that what they are on track for will not provide the lifestyle they were used to while working.

For renters, she noted, the challenge largely stems from high rental costs, which makes it difficult to save for a home deposit, which she said leaves them with less disposable income to put toward retirement savings, creating a "vicious cycle" that undermines financial resilience.

Meanwhile, single people struggle due to meeting all living costs on one salary, which means later life savings are more likely to be “put on the back burner”.

Morrissey also indicated that the self-employed face a “host” of well-known challenges when it comes to preparing for retirement, including unpredictable working patterns and not being auto-enrolled.

Overall, the barometer found that 43 per cent of households are currently on track for an adequate retirement income, unchanged from last month.

These findings on persistent pension adequacy gaps come amid calls from industry for the Pension Commission to implement meaningful reforms.

Pension professionals have urged the commission to “deliver bold reforms to tackle structural inequalities” and have warned that “strong and impactful decisions are needed to avoid a future where retirement poverty is the norm".

The government revived the commission earlier this year to explore the barriers preventing people from saving enough for retirement.

The commission is expected to publish its final report in 2027 and is exploring why tomorrow’s pensioners may be poorer than today’s and what is needed to create a strong, fair and sustainable pensions system.

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