The average pension pot of a UK retiree totals less than a quarter (24%) of the recommended amount for a moderate standard of living, according to research by Finder.com.
The personal finance comparison site found that the average pension pot for a retired person in the UK sits at £69,481, much lower than the £285,000 recommended to enjoy a moderate standard of living from the retirement age of 66.
When asked how much money was in their pension pots, 18% of respondents said they do not have a pension at all or have nothing saved.
On the other hand, 58% do have money saved into their pension. Among these, the average pension pot stands at £35,357, just 12% of the recommended total, while 16% were unsure how much they have saved. Men have around 60% more saved in their pension pot than women, with average savings of £42,892 compared to £26,691.
Additionally, 47% have stopped paying into their pension pot at some point, and a further 11% of adults are considering doing so. The most common reason cited is due to rising costs of daily expenses and bills, followed by increasing costs of rent or mortgage payments.
George Sweeney, deputy editor at Finder.com, said: “Living isn’t getting any cheaper, and with the average pension pot being only a quarter of the recommended amount, people need to start taking action. Even worse than the low levels of retirement savings is the significant cohort of people with no pension pots whatsoever.
“Firstly, paying into a pension as early as possible and aiming for consistency over the years with some form of continuous contributions will greatly impact the final size of the pot at retirement. It’s also worth ensuring people know how their pension is being invested and whether that strategy suits their timeframe. Finally, it’s always worth keeping track of pots and ideally combining them under one, low-cost roof so that a retirement portfolio can compound with the least amount of negative interference.”