Savings crisis for pension pots

According to research conducted by Opinium on behalf of Nutmeg, just three in 10 adults* feel they are either very or fairly confident they are on track to achieve the level income they want to see them through their retirement. 

By contrast, half said they were not confident they were going to have accumulated the income they needed. For the over-55s age group, closer to retirement, the proportion was 47 per cent.

From a regional perspective, just 17 per cent in the East Midlands said they felt confident they were on track. The average pension pot in the East Midlands was the lowest, standing at £17,963, which allowing for future growth delivered a potential pot at retirement of just £149,046,

By contrast, Londoners had an existing pot of £52,516, which allowing for future growth would mean they are in line for more than three times as much – with a future lump sum of £499,775. But despite this stronger financial position, just 34 per cent said they were on track for their desired level of income.

The Scots are the most confident, and among the best prepared. They have an average pension pot of £47,989 and 43 per cent say they are either very or fairly confident they can generate the retirement income they need. 

While the figures may vary, no UK region is saving enough to deliver its desired income in retirement, the report claimed.

In the capital Nutmeg calculated that a pension pot would deliver 14 years’ worth of the desired income of £35,000 to someone retiring at the desired age of 64. With national life expectancy of 81, savers would fall three years short.

The young are most concerned about the effect Brexit will have on their pension. Those aged 18 to 39 were more than twice as worried as those over the age of 55, 39 per cent relative to 17 per cent of the older age group.

*Opinium polled 2,006 adults who have not yet retired between 2 and 6 September 2016. The sample has been weighted to reflect a nationally representative audience