A new report highlights where people across the UK are saving the most for retirement
The regions in the UK with the highest and lowest average pension savings have been revealed, and there is a £12,690 gap between the two.
The findings, compiled by PensionBee, looked at the average amount saved into pensions across all ages, and found that the average savings across the whole of the UK came in at £21,875 – an increase of 9 per cent compared with 2024.
However, those living in the South East have amassed the biggest pension pots, according to the data, which is based on more than 285,000 people’s savings, with an average pension size of £27,727.
At the other end of the scale, the region with the smallest pension savings was Northern Ireland, with an average pot size of £15,118. That is a 45 per cent less than those in the South East have saved.
Londoners have the second biggest pension savings on average, with a typical pot worth £25,838, followed by the South West, which saw pensions average £21,344.
The East Midlands and West Midlands had pension pots of £19,476 and £19,321, respectively, while people in Scotland had average retirement savings of £19,113 – up 9 per cent.
Pension pots averaged £17,957 in the North East, £17,435 in Wales and £17,082 in the North West – the region with the second lowest pension savings in the UK.
The findings from PensionBee come at the same time the Government has said it is concerned that millions of people are under-saving for retirement and will not be able to live comfortably on their pension income alone.
The average pension savings for those at retirement age, currently 66, are much higher, with a typical 66-year-old in the UK having £88,444 saved.
However, according to Retirement Living Standards, an individual needs around £13,400 a year to have a minimum standard of living, just affording essentials, or around £31,700 a year to have a more moderate retirement.
For those looking for a “comfortable” retirement where they can enjoy some luxuries, they would need around £43,900 a year.
With an average life expectancy of around 81 in the UK, retirees need to fund around 15 years from retirement age with their pension income.
As people live longer, retirement pots need to stretch further, so saving for the future is key.
The gender pension gap problem
The average savings for men and women also vary significantly, with women typically having a lot less to live on in retirement.
The report found women across the UK have average pension savings of £16,169, while men typically have a pot worth £25,652.
This gap starts in early age, but worsens over time. For people under 30, men typically have a pot of around £4,009, while women have £3,481 – 13 per cent less.
By the time they reach 50, men have an average of £54,512 in their pension pots, while women typically have £30,644 saved – a huge 44 per cent gap.
This gap varies across regions, but the data for every area in the UK shows a significant gap between men and women’s retirement savings.
For example, women in the South East typically have 63 per cent less savings than men, with average savings of £20,145 against men’s £32,787. In Northern Ireland, men typically have £17,855 while women have £10,221 – 43 per cent less.
Lisa Picardo, chief business officer UK at PensionBee, said that while it is encouraging to see such strong pension growth in the past year despite cost of living pressures, this gender pensions gap is “deeply concerning”.
“Closing this gap demands systemic change, not just individual action. Employers must champion gender-inclusive parental leave that normalises shared childcare responsibilities,” she said.
“The Government must deliver accessible, funded childcare so returning to work doesn’t penalise earnings, and lowering the auto-enrolment age threshold would be a simple yet powerful step towards fairer retirement outcomes.
“These changes will rebalance career breaks between partners, creating equal earning potential and retirement security for women. We cannot allow today’s contribution gaps to become tomorrow’s retirement poverty.”
How to boost your pension savings
There are a number of ways you can boost your pension savings to give you a bigger income in retirement.
One of the best ways is to make sure you are contributing to a pension in the first place, and increase your contributions if you can afford to.
When you contribute to a pension, you benefit from pension tax relief. This is where the Government tops up your pension by 25 per cent, so for every £100 you pay in, you get an extra £25, or more if you’re a higher earner.
The reason you get the extra £25 is that you have already paid tax on the £100 you added to your pension. Before tax, your £100 would have been £125 – that is because £125 taxed at 20 per cent is £100. So, the Government refunds you £25 back into your pension.
If you pay into a workplace pension, your employer will also contribute – but if you stop, you also lose the employer contributions.
Ian Futcher, financial planner at Quilter, said: “It can feel like you are locking money away, but think of it as paying your future self. Retirement can last 20 to 30 years, so building that safety net now gives you freedom and peace of mind later.
“Pensions are also one of the most tax-efficient ways to save, with tax relief and employer contributions boosting your pot, so every pound you put in now works harder for you.”
It is also a good idea to track down any old pension pots so you don’t forget about them and miss out in retirement. There is estimated to be around £31.1bn “lost” in inactive pensions, so it is worth checking.
Check everywhere you have worked before and see if you know where your pensions are.
You could consider consolidating them into one place to keep track of them, but make sure you do not lose any valuable benefits from your old schemes by switching them.
It will help to find old pots if you have kept the paperwork for them, but if you do not have any paperwork, you can use a pension tracing service or contact your old employer’s HR department to check who their pension provider is.