45% of working age people not saving toward a pension at all

[FernFaery]

https://www.theguardian.com/money/2026/may/19/britons-not-saving-enough-retire-pensions-commission

Another looming crisis!

It’s the middle earners in schemes where the employers are putting in minimum that are badly off, I’m one of them. We are exposed to stock market highs and lows and tax relief is limited to basic rate. Of course we are never going to save enough, even with auto enrolment.

Tax relief should be a 30% fixed rate for everyone, regardless of what rate they are on. That would help level up things.

I know some people think this but I can’t see it ever happening as people would just game the system and opt out of making their own provisions whether through occupational or private pensions. Why would anyone pay a significant chunk of their income into a pension if they’ll then lose out on the state pension- which they’re also in effect ‘paying into’ through NI contributions? I know NI doesnt go into a personal ‘pot’ but you know what I mean.) I suspect what will happen is that the state pension will just remain pretty basic and the eligibility age may rise a little, though frankly I can’t see it going much higher than the current 68 as life expectancy isn’t rising.

tbh anyone who doesn’t make provision in addition to the state pension is mad imo. And yes I know COL is impacting hugely but it really makes so much sense even to just pay a few % of income into a pension. I would absolutely not want to live on the state pension alone. It’s doable but it would be a pretty soulless existence .

Lots of people can't afford to.

I'm a carer and whilst I do I work very part time and pay into my work pension it's not a lot. Luckily my state pension has been protected by the fact I get carers allowance.

er? No one makes a decision whether or not they work for 50 years based on their ability to draw down state pension

If the two are not linked what’s the incentive?

Economic inactivity (out of work and not looking for work) sits at 21% Vs the 21.6% of 2016.

The big shift is the youth unemployment (higher) and I presume that as the figures are broadly stable despite that, people retiring at a later age? The number of vacancies is much lower now, too.

I think this is what is ignored in the narrative. Even if every feckless wanderer took the first job available, there wouldn't be enough jobs for everyone to work. There would always be unemployment. Unless, of course, people worked less hours so the jobs could be split, but then people would moan that those people needed support because they weren't earning enough, when they could work full time.

The incentive to have a job for 50 years?

self development
learning and passion
interest
using education and qualifications as intended
meeting people you can learn from
meeting people to expand your social circle
self respect and satisfaction
sense of purpose
earning a monthly income to buy a house/ car /go on holiday
earning monthly income to meet your monthly expenses

and on and on… can you really not imagine why People have jobs or careers?!

Especially as LGPS now offers a 50% contribution scheme because people can't afford to make full contributions. I expect they won't be realising the impact it will be having on their future pension.

They will raise the age before they means test.

There would be utter uproar if those that list in the most tax for years receive nothing

Gen X is a considerably smaller population than the boomers.

If you can afford it start a pension for your kids, it has decades to grow.

Um okay. That way I would be poorer every month just for the privilege of receiving fuck all at the end of it

Do you honestly think that the only purpose of work is to pay for when you stop work!

Pension credits will be phased out.
Jeepvtge triple lock, raise pension credit by 1% - it’s almost level pegging now, would be gone by end of this Government term, and no Government would bring it back. None.

If they raise it much more half of us will be dead before we claim it (although perhaps that's what they want!). They'd also have to raise the age you can claim out of work benefits and carry pip on for longer, I'm not sure it will save them money.

It is hardly surprising.

Many people simply don't have enough money left at the end of the month after paying extortionate rents, utility bills, transport and food costs.

We have stagnant wages and less job vacancies as well.

I am sure most people would love to be able to save for a pension but the reality is that many simply can't afford to.

Why do they get to retire? They have to keep working. It’s that simple.
In whatever capacity they can manage, topped up by universal credits if necessary but they need to be subjected to the same conditions as single mums are back to work after 12 months of giving birth

I pay the minimum into my workplace pension because I can’t afford to pay anymore without it effecting my ability to feed my children. I’m also disabled so can only work part time so yes, I’m counting on the state pension plus the small amount I’ll get from my work one.

It’s not as simple as saying people need to prioritise paying into a pension when for many people it’s simply not possible.

How? If you have enough in a private pension you don't need a state one.

This is why it should be paid straight into a workplace pension at source, with no opt out. There's no choice then and you cut your cloth accordingly.

I think there needs to be a better education in schools and colleges around personal finances and managing finances, including pensions within that.

I pay into the NEST pension thing through my workplace but I know it isn’t going to give me much in retirement because I’m a low earner. Unfortunately, I don’t have any more to give each month as I can only just about afford my current outgoings. I’m very likely to need support in retirement - or be homeless and starving- even though I’ve been working full time.

My kids are finding it impossible to get jobs let alone pay into a pension. Can’t even get jobs in a supermarket. It’s all very well saying ‘oh we paid in and everyone else is lazy’ lucky you that you were able to, not everyone can

And I’ve worked all my life albeit part time for ten years with the kids. My pension pot is a mere £30k

You can’t blame people really. The cost of living has gone through the roof and a lot of people need every spare penny to pay large mortgages or rent, large nursery bills, student loan repayments. These are all expenses that hit younger people the hardest. By the time they have anything to ‘spare’ it can be too late as compounding works best, the earlier you start.

Also as ever we are blaming individuals without looking at the wider context- traditionally excellent pension providers - universities local authorities teaching etc have commonly downgraded benefits to new entrants, In many cases offering a basic DC scheme. This means that cohort of low earners who retired with excellent pensions fall away.

very, very few people get a good pension with a basic employer contribution, no matter how much the reasonably contribute.

secondly it’s the wider economy that’s dictating the low wages which mean people can’t afford to contribute tho the pension the do have

I do not think the public information about pensions is good enough, how much people need to save where to save it that penions are like a payrise and that opting out is inadvisable
if you are self employed you must base your budget on your low income months not high income months if you can't set aside ( after expenses) approx 30% for tax and NI and 10% for pension and the remaining 60% is not enough to live on you can't afford to be self employed as it is not bringing in enough for life
this is why the hourly rate for self employed people needs to be a minimumof £20 after material costs an hour just to be equal to fultime minimum wage job
I do not think that you should be able to opt out of workplace pensions once over age 21 or it is very part time or short term ie less than 6 months
pensions should be managed under auspices of the government to ensure they are invested correctly over long term ( which pensions are ) the stock market is always ahead of inflation, so there is real growth not just keeping pace with inflation ( yes the stock market has the occasional bad year but not long term)

That’s the issue though - some people can’t cut back anymore than they already have. If wages covered the cost of living then you wouldn’t have universal credit top ups for people in low wage jobs.