Average pot size by regions
Research from leading online pension provider, PensionBee, found that, on average, savers in the UK have a pot size of £17,379. Residents in the South East have accumulated the most pension wealth, with an average pot size of £22,673, significantly more (26% greater) than the national average.
Savers in Greater London also exceed the national average by 15%, with a typical Londoner’s pension pot standing at £20,151. Despite London having the highest average weekly income in the UK, the lower average pot size may be attributed to greater housing costs compared to the South East.
In contrast, savers in Northern Ireland have saved the least towards their retirement, with a typical pot size of £12,011, 37% less than the UK average.
Average pot size by region by age
As a saver ages, their average pension pot size increases. Across all age groups, up to the age of 50, those in Greater London typically boast the biggest pension pots, with Londoners under 30 having 35% more saved in their pensions than the national average.
However, as a saver nears retirement (aged 50+), residents in the South East overtake Londoners with their pension wealth, recording an average pot size of £45,265, although it's worth noting that the difference between the two regions is minimal (£666). In contrast, those nearing retirement in Wales have the least saved towards their retirement, with typically only £28,926 in their pension pots, over £16,000 less than those in the South East.
Expected pension pot in retirement
PensionBee also calculated the expected retirement pot of each age group, based on certain assumptions. This analysis found that those nearest to retirement, who have the most pressing financial needs, could potentially retire on significantly smaller pensions than their younger counterparts.
On average, savers aged 50 and over look set to retire on the smallest personal pensions of £78,523 by the time they reach 66. Meanwhile, those under the age of 30 are expected to amass pots worth £180,055, on average, by the time they reach the age of 66.
Becky O’Connor, Director of Public Affairs at PensionBee, commented: “Regional pension inequality is rife. Retirement outcomes are a mixed bag across the country, mainly as a result of different income levels throughout working life.
People in some parts of the country will therefore be more dependent on the State Pension for retirement than people in other parts of the country.
For younger people, the forecast based on their current pot size, is that their income would give them a basic to moderate living standard according to the Pensions and Lifetime Savings Association’s guidelines.”
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