Workers aged over 45 in Greater London and the East of England have over 40 per cent more in retirement savings compared with those in the Midlands and the North, according to new research from Phoenix Insights.
Phoenix Insights surveyed 2,500 people over the age of 45 from various nations and areas in the UK to understand how expectations and retirement planning differ across the nation.
The research found that the average amount saved in these areas is less than £98,000, significantly less than the £248,000 the Pensions and Lifetime Savings Association (PLSA) estimates is required for a modest quality of living in retirement.
According to Phoenix, this underlines the urgent need for additional action to help bridge the pension savings gap in the UK.
Phoenix Group head of research and policy Patrick Thomson says: “People across the UK are living longer lives than their parents and grandparents and unlocking opportunities they never had. But this isn’t being felt evenly around the country. Most people are not saving more to reflect the fact they may be retired for longer, and many are starting to think they might want or need to work for longer than they planned, often in order to meet their retirement income needs or help their loved ones financially too.
“To enjoy fulfilling longer lives, Phoenix Group recognises that we all need to think differently about our futures, and the futures of those we care about. The journey to retirement has already changed for many people, with some reducing their hours in the run up, others embarking on second careers later in life or actively choosing to work beyond state pension age for a variety of reasons. There are also those who have left the workforce early due to ill health or through caring responsibilities.
“Our research shows that we can’t afford to take a one-size-fits-all approach to solving things. We need to look at better opportunities for employment and savings, and the government’s approach must reflect the needs of all parts of the UK to make a real difference to people’s longer lives.”
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