Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • June 2013
06

'Less than half' saving enough for retirement

Open-access content Monday 3rd June 2013 — updated 5.13pm, Wednesday 29th April 2020

The number of people saving adequately for retirement has reached an all-time low, according to a report from Scottish Widows.

2

Only 45% of those who could and should be preparing financially for their old age are currently saving enough. One in five Britons (20%) is saving nothing at all for retirement and over one third are under-saving, the study of 5,200 adults found.

Ian Naismith, pensions expert at Scottish Widows, said savers faced a 'triple whammy of economic uncertainty'. The weak economy made saving for the long term difficult, the age of first-time house buyers was rising and the population was ageing.

'These factors combined create a perfect storm for those heading towards retirement. Whilst we are becoming more aware of the need to save for retirement, we must do more to ensure that we have a comfortable old age,' he said.

Despite pension provision falling for the past two years, aspirations for retirement income have increased substantially. The findings show that, on average, survey respondents would feel comfortable living on an income of £25,200 at 70-years old - a rise of £700 on the 2012 figure.

But, based on average savings levels, someone retiring at 65 is likely to receive an annual pension of just £3,860. Even with the addition of the state pension, this still falls well short of the £25,200 target figure.

Scottish Widows suggested people would be preparing 'adequately for old age if they were saving at least 12% of income or expecting their main retirement pot to come from a defined benefit pension.

'As a nation, we must either prioritise saving for the future and prepare accordingly, or seriously adjust our outlook for old age,' warned Naismith.

The Scottish Widows 2013 Pensions Report suggests three options for savers to improve the situation: start saving at a younger age, save more or retire later than planned.

'Whilst starting saving as soon as possible is highly desirable, and increasing contributions as retirement approaches is almost essential, the biggest single difference can come from postponing retirement,' said Naismith.

'The issue is whether a nation that aspires to stop working at 62 and have an annual income of £25,200 can accept this change.'

 

This article appeared in our June 2013 issue of The Actuary .
Click here to view this issue

You may also be interested in...

Incomes drop at least a third on retirement, says Partnership

People can expect their average income to drop by at least one-third on retirement, with retirees in London facing a fall of almost 50%, according to figures published by Partnership today.
Tuesday 4th June 2013
Open-access content
2

US pension plan deficits 'have more than halved since December'

The aggregate funding level of the US’s leading 1,500 companies’ pension plans rose to its highest point in almost two years last month as deficits fell by $150bn, Mercer said today.
Wednesday 5th June 2013
Open-access content

FTSE 350 deficits fell by £10bn last month, says Mercer

The aggregate deficit of the UK’s 350 leading companies fell by £10bn in May despite a decline in equity values towards the end of the month, Mercer said today.
Thursday 6th June 2013
Open-access content
2

UK 'should learn from Australian mandatory enrolment'

The UK could learn a great deal from Australia’s 20-year experience of mandatory enrolment of pensions, an influential international academic has said.
Thursday 6th June 2013
Open-access content
2

QE 'here to stay' says leading economist

Central banks are likely to continue with quantitative easing over the next few years despite the programme’s limited success so far, according to a leading economist.
Friday 7th June 2013
Open-access content
2

Legislation on defined ambition 'possible by 2015', says minister

Legislation on ‘third way’ pension schemes based on ‘defined ambition’ risk-sharing could be introduced before the end of the current Parliament, the pensions minister has suggested.
Friday 7th June 2013
Open-access content

Latest from Pensions

ers

By halves

Reducing the pensions gap between men and women is a work in progress – and there’s still a long way to go, with women retiring on 50% less than men, says Alexandra Miles
Thursday 2nd March 2023
Open-access content
rdth

Make My Money Matter's Tony Burdon on the practical power of sustainable pensions

Years working in international development showed Tony Burdon, head of Make My Money Matter, that sustainable pensions can harness trillions of pounds to build a better world – at a scale governments and charities can’t. He talks to Travis Elsum
Wednesday 1st March 2023
Open-access content
KV

Liability-driven investments: new landscape

What now for liability-driven investments, after last year’s crash in the market? Pensions experts Rakesh Girdharlal and Moiz Khan say it should lead to a more balanced approach
Wednesday 1st February 2023
Open-access content

Latest from June 2013

ta

'Twentysomethings' willing but not able to save, poll finds

Young workers across the world have the ambition but lack the resources to save for retirement, research has suggested.
Tuesday 12th November 2013
Open-access content

DB pension deficit climbs by £6bn

The aggregate deficit of UK companies’ defined benefit pension schemes increased by £6bn in October driven by falling bond yields, Mercer said today.
Monday 11th November 2013
Open-access content

Top 500 pension fund asset value rises 8%, says Towers Watson

Assets managed by the world’s largest 500 fund managers rose by over 8% to $68 trillion in 2012 according to research by actuaries Towers Watson.
Monday 11th November 2013
Open-access content

Latest from 06

ta

'Twentysomethings' willing but not able to save, poll finds

Young workers across the world have the ambition but lack the resources to save for retirement, research has suggested.
Tuesday 12th November 2013
Open-access content

DB pension deficit climbs by £6bn

The aggregate deficit of UK companies’ defined benefit pension schemes increased by £6bn in October driven by falling bond yields, Mercer said today.
Monday 11th November 2013
Open-access content

Top 500 pension fund asset value rises 8%, says Towers Watson

Assets managed by the world’s largest 500 fund managers rose by over 8% to $68 trillion in 2012 according to research by actuaries Towers Watson.
Monday 11th November 2013
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Life Actuarial Contract - Capital Project (outside IR35)

England
Negotiable
Reference
149010

Pricing Consultant (Non-Life)

London / Leeds
Up to £70,000 + Benefits
Reference
148996

Senior Actuary

London (Central)
Negotiable
Reference
148991
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ