UK pensioners may see modest income growth by the end of the decade, but PensionBee, a leader in the consumer retirement market, is warning that this shouldn’t distract from the bigger retirement savings challenge facing millions.
Responding to new analysis from the Resolution Foundation, which projects a 5% real-terms rise in pensioner incomes by 2029-30, PensionBee has cautioned that relying solely on the State Pension or even on a workplace scheme where only minimum contributions have been made is unlikely to deliver the financial security many people hope for in later life.
Lisa Picardo, Chief Business Officer UK at PensionBee, said:
“A modest increase in pensioner incomes may offer some reassurance, but it won’t be enough to guarantee a comfortable retirement – especially as everyday costs continue to rise and life expectancy increases.
“Too many people are still underestimating the level of savings needed to maintain their standard of living in later life.
“Relying solely on the State Pension or a workplace scheme where only the minimum has been put aside is unlikely to provide the financial security most aspire to.
“It’s crucial that individuals take proactive steps to take control of their retirement journey – whether that’s consolidating old pensions, boosting contributions where possible, making an active investment choice that’s more suited to their retirement goals, or simply gaining a clearer understanding of what their future retirement income might look like.
“The earlier people engage with their pensions, to make the most of what they have and contemplate what more they can do to help their future selves, the more options they’ll have when it comes to shaping the kind of retirement they want and deserve.”
