Pension savers risk retiring with £15k less due to cost of living crisis - Scottish Widows

'Explore creative retirement solutions'

Julia Bahr
clock • 4 min read

In light of the wage stagnation and rising living costs deepening the UK’s retirement income crisis, the average earner in their thirties is set to see their pension pot reduce by £15,000 by the time they retire, according to recent research from Scottish Widows.

The firm's latest retirement report revealed that average earners in their 30s who were auto-enrolled in a company pension scheme in 2012 will have potentially contributed £7,000 less by 2024. These ‘lost contributions' resulted in an overall £15,000 reduction to the individual's total pension pot at retirement due to lost compound interest, the research found. The annual survey showed that four out of five adults (81%) were worried about making ends meet in the current cost of living climate, with three-quarters (76%) saying they needed to take action to cope with the financial pressure...

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