Nearly half (46 per cent) of people with a disability are unable to or unlikely to make any financial contributions towards saving, with nearly half (48 per cent) unlikely to achieve a ‘minimum’ lifestyle in retirement as a result, research from Scottish Widows has revealed.

Findings from Scottish Widows’ annual Retirement Report showed that, among the 16 million people in the UK with a disability, nearly a quarter (23 per cent) of working-age adults fear they may never be able to afford to retire given the massive employment challenges they face.

Indeed, Scottish Widows emphasised that people with a disability are almost twice as likely to be unemployed and three times as likely to be economically inactive, compared to those without a disability, arguing that this “significant” employment gap creates “enormous” barriers to saving and preparing for retirement.

This challenge is also often compounded by the higher costs associated with retirement care and support.

The impact of these challenges was also evident when talking with those who have already reached retirement, as the research found that a “concerning” 18 per cent of retirees with a disability do not enjoy their retirement, compared to 9 per cent of retirees without a disability.

In addition to this, less than one in seven (12 per cent) retirees with a disability report being in good mental health and having the freedom to pursue their interests, standing in stark contrast with 75 per cent of those without a disability.

Scottish Widows also argued that, based on current trends, future retirees with a disability are likely to experience similar challenges to those faced by today’s retirees.

However, the report found that people aged 50-64 with a disability are also less likely to have researched how much they need to save for retirement (39 per cent) compared to the general UK population of the same age (50 per cent).

Commenting on the findings, Asian Disability Network founder, Dr Shani Dhanda, said: “As a South Asian disabled woman, I'm constantly worried about securing and maintaining employment, earning enough to offset extra disability-related costs, and planning for retirement.

“The challenges are relentless, and this research makes the prospect of a secure future even more daunting. These worries are compounded by navigating intersections like race, gender, and socioeconomic status, which add layers of disadvantage.

“A significant number of disabled people in the UK live in poverty and destitution, lacking the luxury of saving for the future. It's crucial to address these disparities with targeted support and accessible financial planning tools to ensure a secure future for all.”

Scottish Widows managing director of retirement, Emma Watkins, agreed, arguing that it is “vital” that the financial services sector, government, and specialist bodies collaborate and engage in open and honest dialogue to ensure everyone’s needs are addressed.

“Improving financial education and knowledge of products like pensions is crucial across all underrepresented communities, but particularly for those groups on track for poorer outcomes in later life—such as people living with a disability,” she added.

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