Recent research has found that the number of people in the UK saving enough for a comfortable retirement has reached a record 59 per cent, which is a four per cent increase on last year.
According to the report’s authors, the results suggest that April’s auto-enrolment step-up had an immediate positive impact on saving habits. However, the number of people not saving at all for their retirement remains static at 17 per cent. Meanwhile, 22 per cent of UK adults, equating to almost 8 million people, believe they will never be able to afford to retire.
Of this group, 35 per cent are more likely to have no savings at all, and 51 per cent said they would only have the State Pension to rely on in later life.
Moreover, the report states that these ‘never-retirers’ are those who are already financially vulnerable. They have an average income of £21,500 a year, which is significantly below the UK average salary of £27,396, and are much more likely to have faced a financial emergency in the past, from an unexpected bill to a sudden drop in income.
Those in this group are understandably anxious about making ends meet, with 85 per cent of them being concerned about running out of money in retirement, compared to 53 per cent of the wider population. Furthermore, 63 per cent are worried they will have to work when they are no longer fit and healthy.
However, the number of people under the age of 30 who are not saving for retirement has fallen dramatically, as figures have shown that 40 per cent of 22 to 29-year-olds are now saving sufficiently, which is a significant uplift from the 30 per cent in 2017.