Pension Saving Is A Postcode Lottery

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If you are a pension saver living in the North East, the bad news is your retirement pot is probably just half that of someone in London or the South East.

A new survey looking at the pension savings of more than 5,000 savers has revealed that how much you can save really depends on where you live.

Savers in the North East accumulated an average pension fund of £14,513, while those in London had £24,503, while those living in the South East had even more – an average £28,183.

The analysis by fintech firm PensionBeeputs the average UK pension pot at £21,441.

Broken down across countries, the average for England is £21,730. Scotland hits £21,482, while Wales languishes on £15,473. In Northern Ireland, the average is £14,796.

Avid savers

Although Wales falls short of England and Scotland, PensionBee suggests the gap may close as the Welsh are the UK’s most avid savers.

The figures suggest that a big pension pot won’t necessarily give you the same standard of life in retirement though, as reflected by PensionBee’s replacement ratio research.

Despite a potential pot of £135,200, Londoners are set to live on 22% of their pre-retirement income – the lowest overall percentage in the analysis – and this includes the state pension.

Romi Savova, CEO of PensionBee said: “The data clearly shows that the most important part of a pension is how much you put in. The government has made it attractive to save and as an industry we need to do the same, by improving customer service and embracing technology. We’re passionate about taking the lead on this and closing the pension gap across the country.”

Average pension savings by region

Region Average pension (£)
England £21,730
East Midlands £15,531
Greater London £24,503
North East £14,513
North West £15,509
South East £28,183
South West £16,356
West Midlands £19,203
Northern Ireland £14,796
Scotland £21,482
Wales £15,473
United Kingdom £21,441

 

Source: PensionBee

Expected pension pot sizes

Region Pension pot at age 65 (£)
England £117,300
East Midlands £64,600
Greater London £135,200
North East £102,500
North West £71,800
South East £149,900
South West £77,800
West Midlands £112,700
Northern Ireland £144,100
Scotland £111,900
Wales £122,800
United Kingdom £118,200

 

Source: PensionBee

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