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!

25% of working age people don’t work. The 5% are just those actively looking for work

This is a totally average percentage though and many countries with virtually no welfare state have a higher percentage of their working age population not working.

That's nice for you.

11 million working age people are out of work. Not all will be claiming benefits. But only three quarters of people of working age are in employment of any kind

But that’s 25% of working age people not working, hence presumably not saving into a pension. Leaves 20% of employed people making inadequate provision, which might be younger people or people who absolutely cannot save right now due to cost of living.

I would say, even £100 a month (if you can) really increases with compound interest. Plus then the government top up

I agree that anyone who can pay in absolutely should and it needs to be a high priority.

I've never earned enough to save for a pension, will have to rely on the state pension

The 5% are just those actively looking for work

I believe 5% are those claiming JSA. People who are actively looking but not claiming wouldn't be part of this stat. And yes, about 25% of working age population are economically inactive.

My next-door neighbour’s wife died of cancer leaving him with a disabled child. The first thing he did was put the kid into full-time state funded residential care.
If more parents/carers did that, perhaps they would take the role more seriously.

@nearlylovemyusernameno the 5% are not those claiming JSA. Those figures are separate. Apparently it’s the number of people who have been applying for jobs in the last four weeks

Regardless. There is obviously and incentive to work for the majority of people.
Plus not the full 25% out of work and not actually wanting to find work.

I may be wrong but if on UC state pension contributions are still paid? So the expectation that we need to pay into our state pensions for 38 years from wages is false?

If you don't then you get pension credit which comes with lots of extras like contributions to rent, dental care, council tax etc?

Most companies and government sector have an automatic private pension which are taken out of earnings. There is the option to opt out but after advice from elders it really is best to keep paying into it.

This figure does seem incredible, most if not all jobs do jave a pension scheme, NEST for zero hours.

Why would you think people choosing to only spend what they can afford on kids birthdays/Christmas and budgeting or foregoing holidays abroad are rich????? Quite the opposite! But still have the sense to pay into a pension.

DH is self employed so any we pay into his private pension comes back as a tax rebate. I am on carers allowance and work ~10hrs a week. Still put a little bit into a workplace pension.

Pension credit is nothing to do with UC - it’s entirely dependent on income below a certain threshold. And not everyone on UC is unemployed.

And how old are you that you’ve never heard of zero hours contracts ?

It's already like that some people on benefits get as much if not more than some people working on minimum wages and being on benefits open the doors to lots of freebies which l am not begrudging for seriously disabled people

But this is often sensible, provided that you have been fortunate to earn well and prepared to save properly during your working years. We did this last year with our lump sum. At 70, we haven't started drawing down the accumulated pension yet, plus it's still accruing new money from rental income. We have state pensions, and I have a very small one from my last paid employment. We're also the owners of the small business that DH started and still runs, so we have another income on a post-retirement profit share basis. The house can be sold to fund care if necessary.

Our DC is in the process of buying a modest house with our gift plus the inheritances from our mothers, which bypassed us via deeds of variation to their wills. Provided one of us lives another seven years, that part of our estate will be outside IHT.

DC has been a member of our SIPP since the age of two. It has been carefully planned over 30 years. I turn slightly apoplectic when Chancellors re-write the rules, and there's zero prospect of investing in any hare-brained government-approved schemes.

Some people barely have enough to live on. And require UC to top up their pittance wage. Perhaps employers should be taking more responsibility.

If you're on UC, the payments are calculated post-pension contributions so you'd actually be better off paying into a pension (for future) and getting more in UC (for now). It would be foolish not to!

Pension credit is a transfer from UC and it is true that you could theoretically be on UC your whole life and it's transferred to pension credit.

Of course many who work get UC but the view some work a certain amount of hours to meet the pay requirement to be able to get UC on top is seen as calculated.

The key here is that you have other income streams. Not everybody cashing out to help their children does. Which was the point Lewis was getting at.

The truth is, sadly, that a lot of people need all the money they can get their hands on nowadays. I pay over a £100 into my pension, and I could really do with an extra ton every month these days..

I think you misunderstand my post.
I do pay into a pension. I haven't opted out.
I paid into a pension when I had a good career for a few years. I had my children amd left work to raise them for a while supported by my partner. Things went wrong. He left (very unexpectedly).
My plan was to return to work when my youngest started nursery, when the relationship broke down, I couldnt.
Once back on my feet I started work again, but couldnt return to my career when on my own with the children.
Since being in work I pay into a pension. Its a meagre amount a month and im not young so time is not on my side.

I have managed to keep a mortgaged roof over my children's heads, clothe them, feed them, save for emergencies, run a car and not get into debt. There was nothing spare to put more into a pension.

Years on from that, I met my DP. I can now save £100 a month to take them on holiday.

Apologies if it is not on my radar to take that extra £100 a month and put it in my pension.

I do understand basic maths and I know how to use a pension calculator. Which I have done. The money I contribute from my salary til I retire wont get me much. Id need a hell of an income to do that. It might happen in the future, who knows?! But my youngest is only 6 and needs me around. So I stay where I am for now.

I work hard. I haven't opted out of anything. There's no need to be so rude and make assumptions that people are thick.

Life isnt linear nor does it go to plan. If my girls dad had stayed, and id gone back into my career id have a very good pension pot now among plenty of others things....I wouldnt be worrying about £100 a month saved for 1 holiday thats for sure!!!

Again, this is the first year I can save and take my children away abroad?! They are 6 and 12....ive been a single parent for 5 years......
Household income under 60k and you aren't rich. Do you think you could manage keeping a house, bills, feed and clothe 2 children, run a car and save for emergencies on under a third of that?!

I was referring to a PP telling me that £300 split over my two children's birthdays and Christmas in a year is too much?! And that i should be putting that money into my pension.

And £100 a month towards a holiday (over 12 months) should also go into a pension instead of a holiday?!

Anyone who is telling someone on a tight budget what to do with their money clearly has no idea what its like to have so little money. This has been shown but other posters on here saying they have a household income of 60k but they aren't rich. Try living on 1/3 of that.

I pay into s pension i haven't opted out but only wage its meagre and I haven't been paying in long so its not rrally going to touch the sides!