Retirement Living Standards

Undersaving in the UK

Number of adults who were not retired but not saving into a pension in 2020

9.6 million

Source

Number of people of working age who are undersaving for retirement

12.5 million

Source

Proportion and number of working age people undersaving for retirement, measured against the Pensions UK minimum retirement living standard

12% - 4.1 million

Source

Proportion and number of working age people who are undersaving relative to the 'moderate' retirement living standard

51% - 17.7 million

Source

Proportion and number of working age people who are undersaving relative to the 'comfortable' retirement living standard

88% - 30.4 million

Source

Proportion of workers in the lowest income band (<£12,500) who do not meet the required threshold

34%

Source

Target replacement rates

Proportion of earnings that a lower earner would need as income in retirement to ensure a similar lifestyle

80%

Source

Proportion of earnings that a median earner would need as income in retirement to ensure a similar lifestyle

60 to 66%

Source

Proportion of earnings that a higher earner would need as income in retirement to ensure a similar lifestyle

50%

Source

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Estimated financial needs associated with various retirement lifestyles.

Undersaving in the UK

Single vs couple undersaving

Target replacement rates

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