UK pension pots have increased by 16 percent on average in just a year as savers “appear to be prioritising pensions more than ever”, according to online provider PensionBee.
Analysis of the provider’s 240,000 customers revealed a substantial rise in savings as average pots grew from £17,379 in March 2023 to £20,077 in March 2024, an increase of 16 percent.
Savers in the north west saw the biggest increase as the average pot rose by 18 percent from £13,270 in March 2023 to £15,651 in the same month in 2024.
People in the south east continued to save the most, with an average pension pot of £25,734, which was 28 percent above the national average in March 2024.
In greater London, the average pension pot stood at £23,393, exceeding the national average by nearly a fifth (17 percent). PensionBee said this could be attributed to London having the highest average weekly income in the UK.
Gender gap
The gender pension gap remained a persistent issue across all regions. Women in northern Ireland face the largest gender pension gap at 44 percent, with average retirement savings for men totalling £16,390, compared to £13,844 for women.
In London, although the gap is lower (29 percent) than the government’s national gender pension gap figure (35 percent), men’s retirement savings total £26,646, compared to women who saved £18,786. The smaller gender gap in this region could be due to London having the highest average salary for women in the UK.
Pot at retirement
The provider also predicted expected retirement pots for different age groups. It forecast that savers under 30 are expected to retire with larger private pensions than older workers. On average, people under 30 could retire on a pot worth £195,058 by the time they reach 66, PensionBee said. The provider said this was due to the accumulation of multiple pensions over their working lives and having a longer period still left to save.
In contrast, people closest to retirement (aged 50 plus) look set to retire with a lot less. The provider forecast this older group can expect an average pension pot of £87,887 by the time they reach 66, despite having more pressing financial needs.
Becky O’Connor, director of public affairs at PensionBee, said: “Pension perseverance is paying off. Savers are diligently building their pots and appear to be prioritising pensions more than ever. This is great news for the retirement prospects of today’s workers, especially the younger cohort who will benefit from being under auto enrolment for most of their working lives.”
