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
  • May 2015
05

Majority of UK workers 'failing to prepare' for retirement

Open-access content Tuesday 19th May 2015 — updated 5.13pm, Wednesday 29th April 2020

The majority of UK workers are not prepared for retirement, with only 7% “on course to meet their retirement goals”, says pensions adviser Aegon.

2

The firm's third UK Readiness Report, which analyses attitudes towards retirement, found 62% of people did not feel confident about being able to retire when they wanted to. More than half (55%) admitted to having never checked their pension savings. 

The report, based on a sample size of 4,000 UK adults, found two in five employees did not know how much they are contributing to their pension pot, and 59% did not know their employer's contribution. 

Half of the UK workers have no idea how much they have saved into their company pension so far, and more than a third (35%) did not know whether they were eligible to be auto-enrolled. 

David Beattie, managing director at Aegon UK Direct said it was "deeply worrying" people were "still failing to prepare" for their future.

He said: "We have a new government, and with this, the opportunity to ensure the pension reform of the last parliament is implemented successfully. 

"The focus has been primarily on giving those approaching retirement more control of their savings, something that we wholeheartedly support. But it is time for a shift in emphasis from both government and industry. 

"We must now focus on the savers, and do more to help them save for the retirement they want."

According to the report, the average age people expect to retire is 63. It said the amount they expected to retire on each year was £42,000. But Aegon said this would require a saving pot of more than £1m, more than the new pension lifetime allowance (£1m in 2016).

Beattie said £42,000 was "unrealistic". "There's a huge disconnect between the amount people have saved and the retirement income they want in retirement," he said. 

However, Aegon said there was "positive sentiment" about the idea of the workplace pension and a desire to save for the future. More than three quarters (79%) planned to rely on their workplace pension as their main source of income at retirement, and only 6% said they'd leave auto-enrolment when the minimum employee contribution rises to 5% in 2018. 

This article appeared in our May 2015 issue of The Actuary .
Click here to view this issue

You may also be interested in...

2

Firefighters receive compensation after pension calculation failure by Government Actuary's Department

More than 5,000 retired firefighters will be compensated following a test case involving pension errors by the Government Actuary’s Department (GAD).
Monday 18th May 2015
Open-access content
2

Pension schemes will stay in deficit for longer as recovery plans are 'blown off course'

Many defined benefit (DB) pension schemes with actuarial valuations this spring will find recovery plans for any deficit have been blown off course, says Towers Watson.
Wednesday 13th May 2015
Open-access content
2

Ros Altmann appointed as new pensions minister

Pensions expert Dr Ros Altmann has been appointed as the new pensions minister replacing Steve Webb who lost his seat in last week’s election.
Tuesday 12th May 2015
Open-access content
2

Uncertainty over EU referendum makes life difficult for trustees

Pension trustees preparing to comply with the revision of the EU directive on Institutions for Occupational Retirement Provision (IORP) are facing challenges as a result of the UK’s Europe in/out referendum, an event was told.
Friday 29th May 2015
Open-access content
2

'Poor pension member engagement due to shameful lack of financial education'

More people are making inquiries to transfer from defined benefit (DB) to defined contribution (DC) pension schemes but not many are switching.
Friday 29th May 2015
Open-access content
2

Lufthansa's pension liabilities up by 41% as FTSE 100 firms' deficits hit £80bn

German airline Lufthansa’s defined benefit pension scheme has seen an increase in liabilities of 41%, according to its latest quarterly report.
Thursday 7th May 2015
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 May 2015

2

Solvency ii webinar

Webinar from The Actuary
Wednesday 10th June 2015
Open-access content
2

EU referendum outcome would have 'significant impact' on pensions, insurance and investment, warns IFoA

The result of a referendum on the UK’s membership of the EU could have a significant impact on how actuaries work, according to the IFoA.
Thursday 28th May 2015
Open-access content
2

Solvency II: standard formula will fit most UK firms but should not be default option

The standard formula should be a “good fit” for most UK insurance firms when complying with Solvency II, but firms still need to assess whether it is appropriate, an actuary has warned.
Thursday 28th May 2015
Open-access content

Latest from small_opening_image

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from 05

2

Solvency ii webinar

Webinar from The Actuary
Wednesday 10th June 2015
Open-access content
2

EU referendum outcome would have 'significant impact' on pensions, insurance and investment, warns IFoA

The result of a referendum on the UK’s membership of the EU could have a significant impact on how actuaries work, according to the IFoA.
Thursday 28th May 2015
Open-access content
2

Solvency II: standard formula will fit most UK firms but should not be default option

The standard formula should be a “good fit” for most UK insurance firms when complying with Solvency II, but firms still need to assess whether it is appropriate, an actuary has warned.
Thursday 28th May 2015
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Exposure Management Analyst

London, England
£40000 - £50000 per annum
Reference
148639

Pricing - Casualty Actuary

London (Central)
£128K + bonus + benefits
Reference
148638

Reporting Contractor

Negotiable
Reference
148636
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