Are you one of 15 million people at risk of retirement poverty?

May 8, 2025 - By 4idiotz

Table of Contents

Article Summary

More than 15 million people in the UK are at risk of retirement poverty, an increase of 1.6 million since 2023. This is due to a higher cost of living, despite an increase in pension saving levels. Pete Glancy, head of pensions policy at Scottish Widows, suggests that the government should address auto-enrolment, self-employed contribution rates, and housing to address this issue. In the meantime, savers can take steps such as starting early, increasing contributions, tracking down lost pension pots, and adjusting the risk profile of their investments.

Original Post

More than 15 million people in the UK are at risk of retirement poverty – 1.6 million more than in 2023. This equates to almost two-fifths of the adult population.

A higher cost of living is largely to blame. Pension saving levels have actually increased over the past year, with projected retirement income rising from £15,500 to £17,200, according to Scottish Widows’ latest retirement report.

Pete Glancy, head of pensions policy at Scottish Widows, argues there are “three key areas” for the government to address “urgently” – auto-enrolment, self-employed contribution rates, and housing.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don’t miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

In the meantime, he says the challenge is “helping people make the most of what they have”.

Steps savers can take to boost their pension include starting early, increasing contributions, and tracking down lost pension pots. Younger savers can also consider adjusting the risk profile of their investments, where appropriate, to take advantage of a longer investment horizon.

“It is essential to ensure people feel financially empowered to make informed decisions and take proactive steps for their future – with a strong sense of financial independence playing a key role,” Glancy said.

What This Means for You

Start contributing to a pension early and consider increasing contributions to boost your pension pot.
Track down any lost pension pots and consider adjusting the risk profile of your investments if you are a younger saver.
Be aware that the government needs to address auto-enrolment, self-employed contribution rates, and housing to help reduce the number of people at risk of retirement poverty.