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
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • December 2017
12

UK facing 'midlife savings crisis'

Open-access content Friday 15th December 2017 — updated 5.50pm, Wednesday 29th April 2020

The UK’s ageing workforce is facing a midlife savings crisis, with one-fifth of people in their fifties and sixties currently unable to put aside anything for retirement.

2

That is according to new research by Aviva, which shows everyday living expenses are making it impossible for many to save, while millions of older workers are unaware of how much they will need.

In addition, two-thirds of people aged 50-59 are failing to ramp up pension saving in the run-up to retirement, despite 51 being the average age they expect to reach their peak earnings.

"It is worrying to see so many of the UK's older workers in the dark over how much they need to save to afford a comfortable retirement," Aviva Savings and Retirement managing director, Lindset Rix, said.

"Planning and provisioning for retirement can be a great unknown, and complicated for many, but burying your head in the sand will only worsen the situation."

Although many fail to increase pension saving, the research shows that a quarter of older workers spend less after turning 50, with 15% doing so because they have already reduced working hours or work part-time.

However, it also reveals that 43% of people in their fifties either save infrequently, or not at all, with 10% using their higher disposable income to spend more post-50.

Many of those that have changed their spending habits as they have got older have done so to help younger generations, with one in ten saying they spend more on their children and less on themselves.

It was also found that four million older workers have not calculated how much they will need in retirement, which is thought to mean that many of their saving habits are not reflecting the reality of their situations.

"These findings show the importance of industry and government taking action to help consumers become better informed and active savers," Rix continued.

"This includes using auto-enrolment to encourage contributions from a younger age, and implementing the pensions dashboard so that people can view their savings and track their progress in one place.

"It also involves using concepts like a mid-life financial MOT or career review to help those in their fifties take stock and plan for later life, including health and well-being as well as financial priorities."


Sign up to our free newsletter here and receive a weekly roundup of news concerning the actuarial profession

This article appeared in our December 2017 issue of The Actuary.
Click here to view this issue
Filed in:
12

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Underwriting Risk Manager

London (Central)
£85K-£95K + Benefits
Reference
124386

Reserving Manager (Contract)

London (Central)
£1200 - £1400 per day
Reference
124385

Life Actuary - Contract - IFRS 17 Financial Impact

England, London / England, Bristol / North Yorkshire, England
£900 - £1150 per day
Reference
124384
See all jobs »
 
 

Today's top reads

 
 

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

© 2022 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