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UK pension savers at risk as private pots lag for women
A Pensions Commission report says about 15 million working age people in the UK are not saving enough for retirement, and warns the figure could reach 19 million without action.
About 15 million people in the UK are not saving enough for retirement, according to the Pensions Commission, which warned the shortfall could rise to 19 million without urgent action, according to the Guardian Business.
The report said the problem is particularly acute for women, with female savers approaching retirement holding private pension pots on average about half the size of men’s. It cited median pension wealth of £81,000 for women versus £156,000 for men.
The Guardian Business also highlighted the case of Sarah, 35, who works in library services in Oxford and has saved about £5,000 into a pension. After finishing her PhD in 2020 and moving through part-time jobs, she said she never began contributions, and she has not opted in to her workplace pension because of the cost of living, despite workplace contributions of about £130 per month.
In her account, Sarah said her rent and essential bills total around £1,500 per month, with a full-time salary of £1,880, and she earns about £500 more from a part-time role. She said her budget is stretched to cover necessities, and her outlook worsened as she got older, with fears her peers who held full time jobs since 21 have more saved.