One in four over 40s have no pension

Analysis of the Departments of Work and Pension's (DWP) Planning and Preparing for Later Life survey found that while most people had started saving for retirement, 24% of 40-75 year olds did not have a private pension, and 16% had not yet started saving.

Only 23% had an idea of the amount they would need to save for retirement, with the majority unsure.

People on lower incomes were less likely to have started saving for retirement. Around 32% of those with incomes of less than £10,500 had not yet started saving compared to just 1% of those with incomes of £44,000 or more.

People with higher incomes were more likely to expect to retire before the current State Pension Age (SPA), which is 66. For example, 54% of those with gross earnings of £44,000 a year or more expected to retire before the current Spa compared with only 36% of those earning below £10,500.

Similarly, people with savings over £100,000 were more likely to expect to retire before the SPA (15%) than those with no savings or those with savings under £15,000 (34%).

The survey provided evidence on how far individuals can make well-informed decisions about how and when to retire and whether they will be in a position to enjoy financial security when they do.

Many respondents reported being unable to afford to make contributions to their pension, with 53% currently without one.

Find our more about retirement planning and working out when you could retire in our article. 

This information is correct as of 13/12/2022