Three quarters of workers not on track for 'moderate' pension income, report suggests
Summary
A report by Pensions UK shows that over 75% of workers are not saving enough money to have a moderate lifestyle in retirement. The cost of living has increased retirement expenses, leading to concerns that many will face a big drop in income when they stop working.Key Facts
- A moderate retirement lifestyle costs about £32,700 a year for one person and £45,400 for two.
- Only 23% of workers are expected to save enough for this moderate level of retirement income.
- A minimum retirement lifestyle costs around £13,900 annually for one person and £22,500 for two people.
- 82% of workers would have enough to reach the minimum retirement standard, but fewer will go beyond that.
- A comfortable retirement lifestyle costs £45,400 for one person and £62,700 for two, with only 9% of workers on track to reach this level.
- Rising costs, especially for food and social activities, have increased the money needed for retirement compared to last year.
- Women tend to save about half as much for retirement as men, with differences in saving starting around age 28.
- The government is considering stronger actions to encourage retirement savings, including reviving the Turner Pension Commission.
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