Phoenix Insights found that when it comes to the UK’s pensions savings gap and ‘retirement readiness’, some regions face bigger challenges than others.

The longevity think tank polled 2,500 workers aged 45 and above across the UK. It found nearly three in 10 (28%) in Wales, Scotland and the South East say they won’t have enough money to live on in retirement. This compares to one in five (21%) in the East Midlands and the South West (22%).

Six in 10 (60%) surveyed in North East, Greater London and Wales worry they will need to work past the current State Pension age, compared to just over half (52%) of those in the North West and Yorkshire & Humberside.

Regional imbalances

People in the Midlands and North of England typically had retirement savings of less than £98,000 – far below the £248,000 the Pensions and Lifetime Savings Association (PLSA) estimate is needed for a moderate standard of living in retirement.

In contrast, workers in Greater London had an average of £144,000 saved for retirement, those in the East of England had £137,700 and people in the South East had £121,500.

The pensions savings gap

Phoenix Insights, part of Phoenix Group, said this highlights the urgent need to do more to help close the pension savings gap across the UK.

Patrick Thomson, head of research analysis and policy at Phoenix Insights, said: “People across the UK are living longer lives than their parents and grandparents and unlocking opportunities they never had. But this isn’t being felt evenly around the country.

“Most people are not saving more to reflect the fact they may be retired for longer, and many are starting to think they might want or need to work for longer than they planned, often in order to meet their retirement income needs or help their loved ones financially too.

“Our research shows that we can’t afford to take a one-size-fits-all approach to solving things. We need to look at better opportunities for employment and savings, and the Government’s approach must reflect the needs of all parts of the UK to make a real difference to people’s longer lives.”

Retirement worries

Phoenix’s research found that many people worry they won’t have enough money to live on in retirement.

A quarter (25%) of workers over 45 across the UK said they definitely won’t have enough money to live on when they retire.

This figure rises to nearly three in 10 (28%) people living in Scotland, Wales and the South East, compared to two in 10 (21%) in the East Midlands and the South West (22%).

The survey also found that more than a third (36%) of workers surveyed worry they will need to dip into their savings before retirement. This was particularly concerning for those living in Greater London (45%) and the West Midlands (42%).

Six in 10 (60%) of workers in the North East, Greater London and Wales worry they will need to work past State Pension age, compared to just over half (52%) of those in the North West and Yorkshire & Humberside.