Over a quarter of UK workers unsure how many pay days remain before retirement, equivalent to 27 per cent of UK workers which is around 9 million people.
This is according to an Aviva research which found that awareness declines with age, as 31 per cent of those aged 55 and over and 35 per cent of people aged 45 to 54 are unsure how many pay days remain.
Meanwhile, some older workers significantly overestimate the time they have left to save. 17 per cent of those aged 55 and over believe they have more than 250 pay days remaining, while 5 per cent think they have over 500, equivalent to several decades of additional work.
Elsewhere, younger workers show higher engagement in retirement planning. 36 per cent of those aged 25 to 34 have already calculated their remaining pay days. While 28 per cent of workers said the realisation made them feel concerned and 18 per cent said they felt shocked, 25 per cent said it motivated them to take action, particularly among younger employees.
Additionaly, the average expected retirement age is 64 but 59 per cent of those aged 55 and over expect to retire at 65 or later and 10 per cent expect to work beyond the age of 68.
The research also found that pension savings is highest among 25 to 34-year-olds at 69 per cent, compared to 41 per cent of those aged 45 to 54 and 46 per cent of those aged 55 and over. It found that 16 per cent of workers never check their pension, while 51 per cent review their savings quarterly or more. Meanwhile, 24 per cent do not know how much they will need in retirement, and 30 per cent believe they could live on less than £250,000.
Aviva head of savings & retirement Alistair McQueen says: “Counting pay days is a simple but powerful way to bring retirement planning into focus. Many people overestimate how long they have left to save, which can lead to shortfalls later. Thinking in terms of paydays makes the challenge feel more real and immediate. If you believe you have hundreds of pay days left, you may delay acting – but the reality is often very different. We encourage everyone to take stock now, review their pension contributions, and consider what steps they can take today. The sooner you start planning, the better prepared you’ll be for the retirement you want.”
