According to Now Pensions, almost 9 million people in the UK remain significantly underpensioned compared to the broader population. The latest data revealed that underpensioned groups have annual private pension incomes ranging from £3,650 to £6,750. This is 43% to 80% compared to the population average of £8,500, leaving many individuals vulnerable to financial insecurity in retirement.
The underpensioned groups most at-risk from retirement poverty include:
- Carers
- People from ethnic minority backgrounds
- People with disabilities
- Women
- Divorced women
- Single mothers
- Self-employed people
- Multiple jobholders
Since 2012, auto enrolment has transformed the way UK workers save for retirement and has brought more than 11 million additional people into a workplace pension scheme. However, many people in underpensioned groups do not meet the eligibility criteria for auto enrolment and miss out on the opportunity to save for their retirement. People in such groups are still able to save for retirement via personal pensions and…
They may also be able to ask their employer to enrol them into the workplace pension. Since 2012, auto enrolment has transformed the way UK workers save for retirement and has brought more than 11 million additional people into a workplace pension scheme. However, many people in underpensioned groups do not meet the eligibility criteria for auto enrolment and miss out on the opportunity to save for their retirement. People in such groups are still able to save for retirement via personal pensions.
Progress has been made in some areas, such as rising eligibility for auto enrolment, but the underpensioned challenge is far from resolved. Consequently, underpensioned groups are forced to rely more heavily on the State Pension.
Please contact us if you would like to discuss ways of boosting your retirement income.