Almost two fifths (39 percent) of people in the UK could struggle to cover their basic needs in retirement, with workers in Northern Ireland and the North East facing the highest risk, according to Scottish Widows.
The latest Retirement Report from the pensions provider reveals stark regional disparities. Almost half (48 percent) of people in Northern Ireland and the North East are on track to fall short of the minimum retirement living standards set by Pensions UK, compared with 34 percent in the South East and 32 percent in the East of England.
Scottish Widows and Frontier Economics analysed pension savings and other data to assess whether people are likely to achieve a “minimum”, “moderate” or “comfortable” lifestyle in retirement. The findings suggest 15.3 million people nationwide are at risk of not meeting even the basic level, raising concerns for employers about the long-term financial wellbeing of their workforce.
Financial confidence is a key indicator of pension planning. Among those who regularly save into a pension, 85 percent feel confident in managing their finances. However, confidence levels vary widely. In Scotland, 44 percent of people say they are not confident about their pension savings, making them the least confident, compared with 32 percent in London, where people are most confident.
Susan Hope, retirement expert at Scottish Widows, said: “The differences between people’s pension prospects across the UK are stark and highlight the scale of the challenge to crack the pensions crisis. Across towns, cities and rural communities, people are facing very different futures, the postcode divide needs to be urgently addressed. We need to equip people with the tools and information they need, to improve their confidence and capability regardless of where they live.
“The everyday pressures on people’s money doesn’t make this an easy task, so helping them to feel empowered to make decisions about their future whether that’s starting a pension, increasing contributions by or simply understanding how much you have saved and what that might look like in the future. Small steps now will make a big difference in the future, and these mustn’t be underestimated.”
The findings are based on a nationally representative survey of 5,167 UK adults conducted by YouGov between January and February 2025, with additional analysis of minority ethnic groups’ retirement prospects.
