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...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
 Be the first to hear about our events and awards programmes.



Already a Professional Adviser member?


More on Retirement income

Industry Voice: IGP and the power of 3

Industry Voice: IGP and the power of 3

M&G Wealth
clock 20 July 2022 • 8 min read
Industry Voice: Talking 'bout my generation

Industry Voice: Talking 'bout my generation

Catriona McInally – M&G Wealth Business Development Manager
clock 13 June 2022 • 6 min read
The research revealed that with UK households feeling the pinch off the back of the cost-of-living crisis, war in Ukraine and two years of Covid-19 restrictions, savers have reported long-term concerns as to their financial health when they stop working

Quarter of savers concerned about financial health in retirement - PLSA

'People aged 35 to 54 most worried'

Julia Bahr
clock 14 April 2022 • 2 min read