How pension aware are you?
Whether you’re in retirement, it’s just around the corner, or you’re a long way off; we’re serving you red hot pension facts.
Flex your pension awareness muscles and see how your knowledge racks up.
Q: How much do you need in retirement?
A: It depends on your personal circumstances. But roughly £43,100 per year for a comfortable retirement for a single person or £59,000 for a couple.
How much you need for retirement depends on how much you need for everyday essentials and little luxuries like; bills, clothes, food, holidays and more.
According to the Pension Living Standards Agency, someone who would like a comfortable retirement would need around £43,100 per year of pension income.
This drops down to £31, 300 per year for a “moderate” retirement and £14, 400 per year for the bare “minimum”.
The minimum would cover you for things like £50 a week spend on groceries, a week- long UK staycation, and £20 for each birthday and Christmas gifts. A comfortable retirement would see a £70 a week spend for food, a 2-week 4* holiday in the Mediterranean plus 3 long weekend getaways in the UK and £50 for each birthday and Christmas presents with a comfortable retirement.
These amounts will change if you’re a couple sharing retirement savings. But in the long run, whatever works for you, is the most important.
You can use our retirement planner to check if you’re on track for the retirement you want.
Q: How many people save into a workplace pension in the UK?
A: 20 million people
Around 88% of eligible people in 2021 (those aged 18 to 64) paid into their workplace pension.
Every eligible employee pays into a workplace pension in the UK, unless they specifically opt-out.
Workplace pension auto-enrolment came into effect in 2012 with the aim of boosting retirement living standards in the UK.
There’s a current minimum of 8% that must be paid into your workplace pension. This is usually split between you and your employer.
Your employer must pay a minimum of 3% into your workplace pension, and you must contribute at least 5%.
Some employers will even increase their contributions if you do. This is called “matching”.
If you’re self-employed, you’ll have to set up your own personal pension. But don’t worry, we’ve made the process easy for you. Just click here to get started.
Have a few workplace pensions dotted around? You might want to think about bringing them all under one roof by combining your pensions.
Q: How many people claim State Pension in the UK?
A: 12.7 million people
Of the 12.7 million people claiming State Pension in the UK, over half are having to rely on the State Pension alone. With no other sources of retirement income.
To qualify for the full new State Pension, you need to have 35 qualifying years of National Insurance contributions.
You can check how many years of National Insurance contributions you have here
Q: How much do you get with a State Pension in the UK?
A: Up to £221.20 per week in 2024-25
If you qualify for the full new State Pension, you can expect to receive up to £11,502.40 per year.
You'll get less if;
- You were contracted out before 2016.
- You don’t have 35 qualifying years of National Insurance contributions.
- You paid into the Additional State Pension before 2016.
You’re eligible to receive a State Pension when you reach State Pension age if you:
- Are a man born on or after 6 April 1951.
- Or a woman born on or after 6 April 1953.
- And have at least 10 qualifying years of National Insurance contributions
It’s important to remember the amount of State Pension you receive might not be equivalent to the full new State Pension. How much you get is based on your own personal circumstances. You can check how much you could receive from State Pension here
You can check your eligibility here