Average pot size by region
Savers in the North West experienced the biggest increase in their pension wealth, with their average pot size rising by 18% from £13,270 in March 2023, to £15,651 in 2024. However, residents in the South East continued to save the most into their pensions, with an average pot size of £25,734, surpassing the national average by 28%.
In Greater London, the average pension pot stood at £23,393, exceeding the national average by nearly a fifth (17%). This could be attributed to London having the highest average weekly income in the UK.
Gender pension gap
The gender pension gap remained a persistent issue across all regions. Women in Northern Ireland face the largest gender pension gap at 44%, with average retirement savings for men totalling £16,390, compared to £13,844 for women.
In London, although the gap is lower (29%) than the government’s national gender pension gap figure (35%), men’s retirement savings total £26,646, compared to women who saved £18,786. This relatively narrower gap in comparison to other regions may be attributed to the fact that London offers the highest average salary for women in the UK.
Expected pension pot at retirement
Further PensionBee analysis predicted the expected retirement pots of different age groups, based on certain assumptions. This analysis found that savers under 30 are expected to retire with larger private pensions than their older counterparts. On average, those under 30 could retire on a pot worth £195,058 by the time they reach 66, owing to the accumulation of multiple pensions over their working lives and having a longer period still left to save.
Meanwhile, those nearest to retirement (aged 50+) look set to retire with less, on an average pension pot of £87,887 by the time they reach 66, despite having more pressing financial needs.
Becky O’Connor, Director of Public Affairs at PensionBee, commented: “Pension perseverance is paying off.
Savers are diligently building their pots and appear to be prioritising pensions more than ever. This is great news for the retirement prospects of today’s workers, especially the younger cohort who will benefit from being under auto enrolment for most of their working lives.”
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