06 Apr 2018

Nearly 1 in 8 Brits will retire this year without a pension

Nearly 1 in 8 Brits will retire this year without a pension

Nearly one in eight UK people stopping work this year have no retirement savings.

New research from Prudential also found that most of this group will either be totally or somewhat reliant on the State pension.

This leaves them starting their retirement with an income of more than £1,000 a year below the Joseph Rowntree Foundation (JRF) minimum income standard for a single pensioner.

The findings are part of Prudential’s annual study – now in its 11th year – which tracks the finances, future plans and aspirations of people planning to retire in the year ahead.

Good news

There is some good news, however, as the 12% retiring without a private pension is lower than the 14% in 2017 and now nearly half the 23% recorded in 2008.

Women are more likely to have no retirement savings – 18% will retire without a private pension this year, compared with 7% of men.

The gap is also narrowing over time – in 2016, 22% of women had no retirement savings compared with 7% of men.

In 2008, the year the Prudential research began, a third of women were planning to retire without a private pension.

A tenth of those retiring in 2018 will either rely somewhat or solely on the State pension, which for those retiring after April will mean an income of £164.35 a week – or just over £8,500 a year.

Taking the JRF minimum income standard of £192.27 a week for a single pensioner, which is a benchmark of the income required to support an acceptable standard of living, those relying on the State pension will fall short of the minimum standard by £27.92 a week, or £1,452 a year.


Stan Russell, of Prudential, said: “The long-term trend for the number of people retiring without a (private) pension is down and that is good news. But there is still some distance to go and it is worrying so many people will be entirely reliant on the State pension for their income in retirement.

“While the State pension is an important part of retirement income, it shouldn’t be the only part and those still in work should, if at all possible, be contributing to a pension and saving towards their retirement.

"It is never too early to start saving into a pension and even a small amount each month can make a difference and help from a professional financial adviser can be invaluable in helping plan for retirement.”

The research highlights the significance of the State pension to people in retirement, including those with pension savings of their own. On average, people expecting to retire this year estimate that the State pension will account for more than a third of their income in retirement.

Retirement planning

It can be hard to plan for tomorrow when we’re busy living for today, but if you begin planning and saving now you’ll have more options in the future.

Our independent financial advisers can help you devise the correct investment and saving strategy to allow you to enjoy the lifestyle you want when you retire.

Please correct the errors below before submitting your request:

Get in touch

Our dedicated client contact team prefer to receive enquiries through our contact form. We'll endeavour to get back to you within 24 hours or during the course of the next working day.

Tick this box if you wish to receive news and offers from Aberdein Considine. By doing, you indicate your consent to receiving targeted email marketing messages from us. On each occasion that we contact you in the future, you will be given the option to opt-out from receiving such messages. You may also email marketing@acandco.com at any time to opt-out.

The personal information that you provide to us in this form will only ever be used by Aberdein Considine (as the Data Controller) for the following specifically defined purposes:

  • email you content that you have requested from us
  • with your consent, occasionally email you with targeted information regarding our service offerings
  • continually honour any opt-out request you submit in the future
  • comply with any of our legal and/or regulatory obligations