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.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

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...

Money Tips of the Week

Read previous post:
Bank of England warns on growth in risky mortgage lending

The Bank of England is concerned by pockets of riskier lending, which could prompt further regulatory action to stem the...