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2w ago

15.3 Million UK Adults Face Retirement Poverty as Savings Fall Behind Living Costs

A Scottish Widows report warns nearly 40% of working-age adults are on track for less than a minimum retirement lifestyle, with inflation worsening the pension gap.

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Among the most vulnerable are people in their 20s (Photo: Getty)

Overview

  • The latest Scottish Widows report reveals 39% of UK adults—approximately 15.3 million people—are at risk of being unable to meet basic retirement needs, up from 35% in 2023.
  • Low- to middle-income earners, under-40s, self-employed workers, and minority groups face the highest risk of falling short of a minimum retirement lifestyle.
  • Pension savings growth has been outpaced by inflation, leaving many with inadequate retirement funds despite slight increases in contributions.
  • Regional disparities persist, with only 52% of people in Northern Ireland and the North East on track for minimum retirement standards, compared to 68% in the East of England.
  • The report calls for urgent policy changes, including addressing auto-enrolment levels, self-employed pension contributions, and housing affordability, ahead of the government’s upcoming pensions review.