There are 1.6 million people in the UK aged between 55 and 64 facing retirement without any pension savings, research from Just Group has revealed.

The retirement income specialist noted auto-enrolment into pensions had boosted pension saving, but said the figures revealed a worrying hole in the nation’s preparations for later life – with thousands relying on State Pension and other benefits to make ends meet.

The figures revealed that women aged between 55 and 64 were more likely to be without private pensions than men – with 28% having no pension wealth compared to 16% of men.

Considering the total 4.5 million people in the same age bracket in the UK who have not started taking pension benefits, Just Group revealed the proportion with zero private pension wealth had risen to 40%.

“This generation will be retiring over the next 10 years and many hundreds of thousands will be reliant on the State Pension and other benefits,” Group communications director at Just Group, Stephen Lowe, commented.

“Even assuming people retiring will get the full State Pension – and only about 44% currently do qualify for the full amount – that is still a significant gap between income and expenditure. However, those who own their homes may be able to generate some extra income by downsizing or releasing equity from their property which would help bridge this shortfall.”

Just Group also highlighted that people still working have time to work towards a higher retirement income – with the top priority being to check their National Insurance record to ensure they have at least the 10 qualifying years needed to claim some State Pension, and ideally the 35 years needed to claim the full amount.

Lowe added that those heading into retirement and struggling for income should ensure that they are claiming their full entitlement to benefits such as Pension Credit and Council Tax Reduction.

He continued: “Only about six in every 10 of those entitled to Pension Credit claimed the benefit meaning that about 1.3 million households are missing out, with couples less likely to claim than either single women or male pensioners.

“Not everybody will be capable of working longer or saving harder so many will end up relying on the support that the State provides.”

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