31 million Brits estimated to be unable to live comfortably during retirement, according to shocking new report
A new report commissioned highlights a worrying trend: 77% of Brits are unable to save for retirement, as the cost of living comfortably during retirement has nearly doubled in just three years.
With only 31% of those in full-time employment actively saving for retirement, the findings by Raisin UK suggest that preparing for later life is not a priority for many.
The pension pot required for a basic standard of living has jumped by 60% (from £67,300 to £107,800) in just three years, according to Raisin UK’s Great British Savings Report. This sharp increase puts further pressure on those nearing retirement, making financial security seem increasingly out of reach for millions of Brits.
The report shows that younger adults are tapping into their savings up to six times a month, making it hard to achieve financial stability. Meanwhile, although older adults generally feel more financially secure, inflation is quickly diminishing the value of their savings
With just 23% of Brits actively saving for retirement, the report calls for urgent attention to better saving habits, particularly as financial pressures continue to mount. Platforms like Raisin UK offer a solution by connecting savers to competitive rates across a range of banks, helping them grow their money more effectively in a volatile economic environment.
Notably, younger generations are particularly vulnerable, with nearly half of 18-24 year-olds having savings below £1,000. Furthermore, only 8% of 16-24 year-olds are saving for retirement, compared to 28% of those aged 55 and over. While those aged 55+ generally have built stronger savings cushions, they are not immune to inflation and increasing retirement costs.
Kevin Mountford, co-founder of Raisin UK and savings expert, commented on the findings: “It’s a worrying sign of the times that so many Brits are without a financial safety net, particularly younger people who are finding it increasingly hard to save. The fact that nearly a quarter of the population has such limited savings leaves them dangerously exposed to unexpected expenses. At Raisin UK, we’re passionate about helping savers make their money work harder, especially in this challenging climate.”
Mountford added, “While older savers have been able to accumulate more over the years, they are not immune to rising costs. What’s clear is that savers of all ages need to take action now to ensure their financial future is secure.”