Overview

• Analysis by the Pensions and Lifetime Savings Association shows an average £35,000 earner will accumulate just £460,000 at retirement under the current 8% contribution rate, leaving a £740,000 shortfall against the £1.2 million benchmark.
• Experts calculate that boosting total pension contributions to 12% would raise the average earner’s pot to about £692,000 but still leave a significant funding gap.
• Ministers are weighing major auto-enrolment changes and greater employer payments, drawing on proposals modeled on Australia’s compulsory superannuation system.
• Women face a higher risk of retirement poverty, receiving on average half the pension of men and making up 36% of older adults living alone compared with 23% of men.
• Industry leaders urge savers to follow the PLSA’s Retirement Living Standards for clear savings targets and to consolidate multiple pension pots to reduce fees and simplify planning.