At a glance: Retirement savings across the UK

1 Dec 2014 | COMMENTS: 0 | Author: John Lucas | General

Are you making the right preparations for a financially comfortable retirement? It’s estimated that almost half of all British adults are risking a major pension shortfall by failing to put aside enough money during their working lives.

Pension provider Scottish Widows estimate that people need to be putting aside 12% of their income every month from the age of 30 in order to save enough money for a decent retirement income. However, their 2014 pension report indicates that the number of people achieving this target varies considerably across the UK.

Region
Saving Adequately Somewhat Under Seriously Under Not Saving At All
West Midlands

65%

16%

10%

10%
East of England

58%

16%

10%

15%
Yorkshire & Humber

57%

15%

12%

15%
North West

56%

15%

5%

24%
North East

55%

13%

5%

27%
Scotland

55%

12%

14%

19%
South West

53%

15%

10%

22%
East Midlands

48%

20%

13%

9%
London

47%

18%

17%

18%
South East

47%

18%

16%

19%
Northern Ireland

46%

19%

5%

30%
Wales

45%

25%

5%

25%

According to this data, people in the West Midlands are most likely to be prepared for retirement, with 65% saving adequately and just 10% failing to save at all. By contrast, Wales and Northern Ireland feature the lowest proportion of people who are saving at least 12% or more of their income, and among the highest percentages of people saving nothing at all. The North West and North East also feature a large proportion of people failing to put money aside for the future.

The report also indicated that women were less likely to be saving enough than men – across the country 55% of men were saving adequately compared to just 50% of women.

In addition, people with an income of under 30k per year were considerably less likely to be saving than higher earners. However, people earning 50k per year or more were slightly less likely to save than those in the middle-income bracket (30k-50k). This may suggest that the highest-earners may be more likely to become complacent about their financial security, consequently failing to put aside a private pension fund.

Income per year
Saving Adequately Somewhat Under Seriously Under Not Saving At All
10-30k

50%

16%

7%

27%
30-50k

59%

16%

17%

7%
50k+

50%

21%

20%

9%

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