From Yahoo Finance: 2025-04-02 06:41:00

A significant number of UK adults underestimate the amount needed for retirement, with 60% unsure if they will have enough for a moderate standard of living. The average UK pension worth is only £50,923, far below the recommended £500,000 for a modest retirement. Many believe they can retire comfortably with less than £50,000 or solely rely on the state pension.

Research shows a lack of engagement in retirement planning, with one-third of Americans unaware of their pension savings. Despite projections, many approaching retirement believe they need less than £50,000 for a decent quality of life. Financial planning plays a key role in retirement confidence, with 56% feeling secure with a plan compared to 33% without one.

The gap between savings and reality is widening, especially among those approaching retirement. Confidence in achieving financial security is low, with only 15% of 45-64-year-olds believing they will save enough for a moderate standard of living. Average pension savings fall short of recommended amounts for a comfortable retirement.

St. James’s Place calls for action on retirement planning, emphasizing the need for improved financial education and engagement. Proactive steps include integrating financial education into school curriculums and reforming auto-enrolment contributions. Having a financial plan in place boosts confidence and engagement with retirement finances, highlighting the importance of policy, industry, and individual level action.



Read more at Yahoo Finance: Majority of UK adults underestimate retirement savings needs