Patrick Thomson, Head of Research Analysis and Policy at Phoenix Insights, comments on the variation in the amount people are saving across the UK.

New research from Phoenix Insights, the longevity think tank from Phoenix Group, shows workers aged over 45 in Greater London and the East of England have over 40% more in retirement savings on average compared with those in the Midlands and the North. Total savings in these regions average less than £98,000 - far below the £248,000 the Pensions and Lifetime Savings Association (PLSA) estimate is needed for a moderate standard of living in retirement - highlighting the urgent need to do more to help close the pension savings gap across the UK.

Phoenix Group’s Patrick Thomson, Head of Research Analysis and Policy at Phoenix Insights, said:

People across the UK are living longer lives than their parents and grandparents and unlocking opportunities they never had. But this isn’t being felt evenly around the country. Most people are not saving more to reflect the fact they may be retired for longer, and many are starting to think they might want or need to work for longer than they planned, often in order to meet their retirement income needs or help their loved ones financially too...

Our research shows that we can’t afford to take a one-size-fits-all approach to solving things. We need to look at better opportunities for employment and savings, and the government’s approach must reflect the needs of all parts of the UK to make a real difference to people’s longer lives.

To tackle the regional disparities found in retirement readiness, Phoenix Insights is urging the Government to go further to ensure that everyone has the tools and support they need to engage with their pension savings earlier. This includes considering policy at a regional and local level to target action on under-saving, adapting it to the local economy and savings challenges.

To support regional action, the Government delivering on its commitments to lower the automatic enrolment thresholds will increase pension participation across the UK, and committing to a timeline to enact changes to the advice and guidance boundary will ensure that more people can access reliable and tailored financial support.

Full release: Regional “retirement readiness” gap revealed: Workers in Greater London and East saving 40% more than Midlands and North

✉️ Andrew Golder, Phoenix Group, 07977 678988 / Andrew.golder@thephoenixgroup.com