As many as two in five (39%) people in the UK could struggle to cover their basic needs when they reach retirement, however, this is not equal across all parts of the UK.
What the regional retirement picture looks like
Nearly half (48%) of people in Northern Ireland and the North East are at risk of poverty in retirement, while this drops for those in the South East and East of England, to 34% and 32%, respectively.
Scottish Widows and Frontier Economics analysed numerous data points against the retirement living standards set by Pensions UK, which help people picture what kind of lifestyle (basic, moderate or comfortable) they could have in retirement.
Pension planning and financial confidence go hand in hand
The findings also showed that those who regularly save into their pension are more confident in managing their finances (85%), highlighting the link between pension management and financial confidence.
However, this isn’t the case for everyone as across the country, with a vast number of people not confident when it comes to pension savings. Those living in Scotland are the least confident, while Londoners show the highest levels.
Proportion of people who aren’t confident about their pension savings:
• Scotland: 44%
• North East: 38%
• Northern Ireland: 37%
• South East: 36%
• Yorkshire and the Humber: 36%
• East Midlands: 36%
• West Midlands: 36%
• Wales: 36%
• East of England: 35%
• North West: 35%
• South West: 34%
• London: 32%
Susan Hope, Scottish Widows Retirement Expert, commented: “The differences between people’s pension prospects across the UK are stark and highlight the scale of the challenge to crack the pensions crisis. Across towns, cities and rural communities, people are facing very different futures, the postcode divide needs to be urgently addressed. We need to equip people with the tools and information they need, to improve their confidence and capability regardless of where they live.
“The everyday pressures on people’s money doesn’t make this an easy task, so helping them to feel empowered to make decisions about their future whether that’s starting a pension, increasing contributions by or simply understanding how much you have saved and what that might look like in the future. Small steps now will make a big difference in the future, and these mustn't be underestimated.”
Scottish Widows Retirement Report 2025
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