Nearly half of working-age adults in the UK do not save into a pension, exposing a looming crisis in retirement preparedness. A recent report from the government-backed Pensions Commission reveals that women nearing retirement hold only half the private pension savings of men, with median pension wealth at £81,000 compared to £156,000 for men.
The commission warns that closing this gender pension gap is crucial—not just for fairness—but to prevent rising pensioner poverty and financial strain on government resources.
This struggle to save for old age is reflected in the stories of workers across the country. A 35-year-old library worker shared her concerns, saying, “I have essentially nothing saved for my future. I had good intentions to contribute to pension schemes, but frequent part-time jobs prevented me from starting. I never thought each role would be short-term.”
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Living alone in a small flat, her monthly rent and bills total £1,500, while her full-time salary is only £1,880, leaving little room for pension contributions.
Another example is a 54-year-old single father of two, who recounted how unexpected setbacks repeatedly eroded his savings. “First the financial crash, then Covid, now the wars,” he said. “Mortgage deposits or pension savings have always taken the hit.”
He describes thinking about the future as “frankly terrifying,” unsure if he will ever be able to retire comfortably. “I don’t know how I will survive on a state pension,” he said. “Every time I start to stress, another decade passes and I’m still in the same place.”
The Pensions Commission was reinstated last year by Keir Starmer in response to growing fears that current workers may face worse financial circumstances in old age than today’s retired generation. Addressing these challenges is now a government priority as the UK confronts a deepening retirement savings crisis.