Shock - people not saving enough

30 September 2015
Royal London have published research into retirement savings in the UK. Here we look at some of the key findings.

State pension

40% of 30-40 year olds not saving for retirement say they will rely on the state pension at retirement, however:

  • 46% say they could not live off the current state pension in retirement
  • 40% of all 30 - 40 year olds stated that they think that it is 'somewhat unlikely or 'very unlikely' for the state pension to be in existence in 2050.


  • Today’s retirees spend £1,084 per month on essentials (commodity/services, fuel & power, transport, housing and food)
  • According to the Centre for Economics and Business Research's (CeBR), this is set to increase to £2,930 per month, or £35,500 p.a., by 2050, an increase of 148%
  • Only 8% of those in their 30s expect to need their pension for 30 years or more.

Current savings

  • The median sum saved for retirement by those under the age of 30 with a pension is £6,000
  • This rises to only £14,000 for those in their 30s
  • Only 15% of 18-40s think they are on track and saved enough for retirement
  • Of these 25% currently have less than £20k saved in their pension.


  • 84% of 18-40s surveyed said that a 3rd party incentive, such as a £1 top up for every £2 they saved would make them save more
  • 33% of people in their 30's have taken professional advice from a financial adviser
  • 24% of those aged 35-40 said a financial adviser is their main source of advice.


The research shows that many people underestimate how much they will need in retirement, and how long for.

Read the full report

Pensions through the Ages - 
Generation 2050 and Beyond


Advisers can make a difference by helping clients to identify:

  • Their likely income needs, based on current spending rather than a single fund value
  • The age at which they would like to start taking income and how long it may be needed for
  • The shortfall in their current savings if this objective is be achieved

And, most importantly,

  • Checking on a regular basis if they are on track and making adjustments as necessary.

Further information

  • The full report was published on 30 September 2015.
  • Read a press release about the research issued by Royal London on 30 September 2015.
  • Research was carried out by Harris Interactive UK Ltd between 14 August and 19 August 2015:
    • Survey of 3,060 UK adults aged: 18 – 29 (741 respondents); 30 – 40 (1,186 respondents) and 65 – 75 (1,133 respondents).
    • All 18 – 40 year olds interviewed were in paid employment.
    • Data weighted on age, gender and region to reflect the working population aged 18 – 40 and the general population aged 65 – 75.
About the author

Fiona Tait

Pension Specialist

Fiona joined the life and pensions industry in 1989. She is a Fellow of the Personal Finance Society, an Associate of the Chartered Insurance Institute and is currently Vice-President of The Insurance Society of Edinburgh. Fiona specialises in the areas of at retirement planning and pensions and divorce.

Last updated: 20 Nov 2015

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