You are here: Home - Retirement - Retirement planning - News -

One in eight have made no provision for retirement

Written by:
Nearly one in eight people retiring this year (12%) have made no provision for their retirement, according to new research from Prudential. This includes 10% who are largely reliant on the State Pension.

For this group, this means starting retirement with an income of £164.35 a week (state pension from April 2018). This is around £1,452 a year below the standard generally considered acceptable for a single pensioner.

This is lower than the figures seen in 2017, which was 14%. As recently as 2008, the figure sat at 23%. However, there is still a notable gender gap. Women are more likely than men to have no retirement savings – 18% will retire without a pension this year compared to just 7% of men. Nevertheless, this is getting better over time.

For the average retiree in Prudential’s ‘Class of 2018’ relies on the state pension for about a third of their income. Of those who have a pension, two fifths (42%) have the majority in a workplace final salary scheme, while one in eight (13%) have their savings in a personal pension.

Stan Russell, retirement income expert at Prudential, said: “The long-term trend for the number of people retiring without a pension is down and that is good news. But there is still some distance to go and it is worrying so many people will be entirely reliant on the State Pension for their income in retirement.

“While the State Pension is an important part of retirement income, it shouldn’t be the only part and those still in work should if at all possible be contributing to a pension and saving towards their retirement. It is never too early to start saving into a pension and even a small amount each month can make a difference and help from a professional financial adviser can be invaluable in helping plan for retirement.”

Retiring with no pension 2008 to 2018

How the retirement saving message is hitting home

People retiring in… Proportion of retirees with no pension savings


State Pension as proportion of average retiree’s total income
All retirees Men Women
2008 23% 17% 32% 32%
2009 22% 11% 31% 31%
2010 20% 9% 30% 34%
2011 20% 10% 28% 37%
2012 16% 9% 22% 35%
2013 16% 8% 23% 36%
2014 14% 7% 20% 35%
2015 15% 9% 21% 36%
2016 14% 7% 22% 35%
2017 14% 9% 19% 35%
2018 12% 7% 18% 33%

Source: Prudential’s Class of…retirement research – 2008 to 2018


There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week