‘I don’t think I’ll ever retire’: the workers struggling to save for old age
Almost half of working-age adults in the UK do not save into a pension. Four readers explain why they fear for the future“I am 35 and have essentially nothing saved for my future,
By The Guardian
Almost half of working-age adults in the UK do not save into a pension, leaving millions without a financial buffer for retirement. According to a report by the Pensions Commission, 45% of working-age adults in the UK are not saving into a pension, representing 15 million people who are not saving enough for their retirement.
The report found that only 4% of self-employed workers are saving for retirement, and about 30% of private pension pots were accessed at the earliest possible opportunity. Sarah, who works in library services in Oxford, is one of the individuals struggling with this issue, stating she is 35 and has essentially nothing saved for her future despite having saved £5,000 into her pension.
She explained that after finishing her PhD in 2020, she had good intentions of contributing to pension schemes but never started because she had a succession of part-time jobs and never felt any role would be long-term. Sarah said she does not think she will ever retire, reflecting the fears of a growing cohort of workers who cannot afford to save for old age.
The full new State Pension is currently £241.30 a week, but many workers will not receive this amount without at least 35 qualifying National Insurance years. To get some of the new State Pension, individuals need at least 10 qualifying National Insurance years, with payouts calculated based on the total number of years built up.