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12.2 million people at risk: Almost a third (31%) of UK adults are on track to fall below even a minimum standard of living in later life.
A three-way split: The UK population is divided almost equally: 31% face less-than-minimum standards, 30% are heading for a basic retirement and 30% are on target for a comfortable one.
The self-employed gap: Over a third of part-time and self-employed workers risk falling short, compared with fewer than one in five full-time employees.
Robert Cochran, Pensions Expert at Scottish Widows, said: “Nobody wins a giant vegetable competition by looking at their pumpkin once a year and hoping for the best. The growers who produce extraordinary results give their plants regular attention throughout the season. Retirement saving works much the same way. You don't need to make dramatic changes, but regularly checking in on your pension and taking small actions can make a surprisingly big difference over time.”
Robert shares five giant-growing secrets for a bigger pension:
Plant early
Champion growers know that the earlier they start, the longer their vegetables have to grow. Pensions benefit from time too. Starting earlier gives contributions more opportunity to benefit from investment growth and compounding. Even relatively small sums paid in earlier can have a meaningful impact over the long term.
Feed growth regularly
A prize-winning vegetable needs regular nourishment. For a pension, that means contributing consistently and reviewing what you pay in when your circumstances change. A pay rise, bonus or reduction in another expense can create an opportunity to add a little more. If your employer offers contribution matching above the standard level, check whether you are making full use of it.
Give it room to grow
Giant growers concentrate resources on the crop they want to develop. In pension terms, that means understanding what you already have and avoiding forgotten savings. Use the Government’s free Pension Tracing Service, alongside your CV or employment history, to identify schemes from previous jobs. Many providers also offer tracing support. The Scottish Widows app, for example, allows customers to trace old pensions and consider possible next steps.
Check the growing conditions
Successful growers monitor the soil, weather and progress throughout the season. Pension saving also benefits from an occasional check-in. Download your pension provider’s app, review your workplace and private pensions, and check your State Pension forecast. The HMRC app can show what you are currently on track to receive and when.
Know what you are growing towards
Every giant grower has a target. For retirement, the aim is a lifestyle rather than a weigh-in. Pensions UK’s Retirement Living Standards illustrate minimum, moderate and comfortable retirement lifestyles and their potential costs. Once you have a sense of the retirement you want, a retirement calculator can help you explore how contributions, investment growth or retirement age could affect the outcome.
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