Almost a third (30%) of respondents within ten years of the state pension age (over-55s) still have no active pension plan in place, according to research by Aegon UK.
Its UK retirement readiness survey, which polled 1,191 employees of all ages across the UK, found that, two-thirds said they had no back-up plan in place to provide an income should they be unable to work before they retire.
The research also found that more than half (52%) of all respondents are saving into a workplace pension scheme, while 20% are saving in a personal pension plan and 36% currently have no form of pension plan in place at all.
The research also found:
- Almost 40% of female respondents have no form of active pension, compared with just over 30% of men.
- The biggest provision shortage in the UK is in Wales and the south west of England, where 46% and 43% of respondents, respectively, have no personal or workplace pension.
- Among respondents aged 25 to 34, 45% of respondents have an active workplace pension scheme in place.
Duncan Jarrett (pictured), managing director of retail and at retirement at Aegon UK, said: “Some of our findings are alarming to say the least with worrying levels of confusion, apathy and realism, and we’ve also discovered some surprising regional trends.
“Perhaps the most worrying finding of all is that these poor planning trends are evident in those closest to retirement, in the 55-plus age bracket.
“Many industry analysts and the media have previously claimed there is a pensions time bomb ticking in the UK, but our study suggests time has almost run out.
“Contrary to this, there are positive signs among the younger respondents [because] 25-34 year olds are demonstrating early signs of strong retirement planning and personal responsibility.
“There is huge room for improvement, but there are simple solutions for this important problem that can be adopted by anyone.”