40% of savers unsure how much to save for retirement

Only a minority (16%) of UK employees are confident that the amount they are currently saving is sufficient for retirement, while 40% of workers have little or no idea how much they need to save for retirement, according to research from Royal London.

The survey found that a further 46% of savers are “fairly confident”, while a "significant proportion" (37%) are not confident.

However, the research found that two fifths (43%) of those who were confident they will have a secure income for the duration of their retirement are currently saving 5% or less of their annual gross income.

In addition to this, Royal London warned that the 'set and forget' approach utilised by auto enrolment can leave many unsure of how much they’re currently saving, with 15% unsure how much they and their employer are collectively contributing to their pension.

One in five (20%) workers also admitted to having never checked their pension savings.

Royal London warned that while now might not be the right time, without a plan to increase pension savings levels in the future, today’s cost-of-living crisis could be repeated in retirement.

Royal London director of policy & external affairs Jamie Jenkins argued that it is "therefore crucial that we set out a clear plan to raise retirement saving to more adequate levels in future".

“Saving for later life through your employer may be embedded into the DNA of the UK pensions system, thanks to automatic enrolment, but we need to be realistic about setting the right level of saving to achieve the retirement people aspire to," she continued.

“For most people, saving at the minimum of around 8% of their salary won’t be enough to give them the kind of retirement that they want.

"Older workers often look back on their working life with regret that they didn’t take more responsibility for their financial future sooner – either starting saving earlier or putting a bit more away than they did.”

“Starting to save for retirement as early as possible gives you the best chance of building up a bigger pot over as long a period as possible.”

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.


Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?



In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.

The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.