UK Pension Warning: 75% of Workers Off Track for Moderate Retirement Income

More than three-quarters of UK workers are not on track to achieve a “moderate” standard of living in retirement, according to a warning from a pensions trade body.

Only about 9% of workers are on track to achieve a comfortable retirement income, according to the report.

The findings were reported by BBC News journalist Kevin Peachey.

Pensions UK warned that many people face a “cliff-edge drop in income” when they retire. Its report estimates that a moderate retirement lifestyle costs around £32,700 per year for a single person and £45,400 for a couple, yet only about 23% of workers are projected to reach that level.

The report also outlines two other benchmarks: a minimum retirement lifestyle costing around £13,900 for a single person and £22,500 for couples, and a “comfortable” lifestyle estimated at £45,400 for individuals and £62,700 for couples.

Only about 9% of workers are on track to achieve a comfortable retirement income, according to the report.

The calculations are based on research developed by the Centre for Research in Social Policy at Loughborough University and are intended to help individuals plan retirement spending across essentials such as food, transport, holidays, and clothing.