Quarter of savers believe their current level of pension saving won’t be enough to live off in retirement

Just over a quarter of savers surveyed (26%), who have a workplace pension, think that their current amount of pension saving will not be enough to get by on when it comes time to retire, a Pensions and Lifetime Savings Association (PLSA) survey has heard.

With UK households feeling the pinch off the back of the cost-of-living crisis, war in Ukraine and two years of Covid-19 restrictions, savers have reported that they have long-term concerns as to their financial health when they stop working.

In the survey, the PLSA found that those aged between 35 and 54 (29%) were most concerned that they wouldn’t have enough to live off, compared to those aged over 55 (20%). Just under a third of women were concerned (31%), compared to one in five men (21%).

Furthermore, 35% of those in low-income households – whose total income is up to £14k – and 31% with an income £14k – £28k stated their concerns. This figure drops to just one in five (20%) for those in households with an income of over £48k.

What Retirement Living Standards do savers want from their pension saving?

One in five people surveyed (21%) – who have a pension – say that they save into a pension to ensure that they have a minimum standard of living in retirement; a pension that meets all their basic needs.

Around two in five (41%) however, say they save to ensure they have a moderate standard of living in retirement – a pension that will meet their basic needs and allow them to do some of the things that they would like to do – while a third (33%) say they do so to ensure they have a comfortable living standard; saving enough to ensure that they have enough money to live comfortably, including doing most of the things they would like to do.