One in ten people over the age of 55 in the UK don’t have a pension, research suggests.
Meanwhile, 17% of those aged 45 to 54 also don’t have a pension plan, along with three in 10 (29%) 35 to 44-year olds, analysis of 3,000 life insurance enquiries by MoneySuperMarket found.
Across all age groups, over a fifth (21%) of Brits don’t have a pension, according to the data.
Nearly two thirds of people across all age groups could be underestimating how much of a pension they will need for retirement, the research also found.
In fact, one in five (19%) believe they could manage with a pension pot of just £50,000 – a massive 81% less than the recommended £262,500.
Additionally, nearly half (46%) of those aged 55 and over have not yet written a will – a 20% increase since 2018, when the figure stood at just a quarter (26%).
Of those between 45 and 54, 57% don’t have a will, rising to three-quarters (75%) of 35 to 44-year-olds.
Data from MoneySuperMarket’s Prepared for Life tool shows three in five of those aged 55 and over do not have life insurance.
It also shows that insurance premiums for those over 60 cost £42, on average.
Looking across the UK, premiums are highest in Taunton for those over the age of 60, costing about £56.05 a month.
At the other end of the scale, people of the same age in Ilford pay 40% less, at about £33.65 a month.
“It’s interesting to see the number of people enquiring about life insurance across different age groups that are yet to prepare their financial futures,” said Neal Cross, life insurance expert at MoneySuperMarket.
“The importance of life insurance, pensions and wills are often overlooked, which could explain the disparity between the recommended pension pot of £262,0002 and how much people believe they’d need to get by.
He added: “Life insurance premiums increase by age, therefore, the longer you wait to get it, the higher your monthly payments are likely to be.
“Similarly, if you stop paying for life insurance and repurchase it at a later date, your premiums will still go up, purely down to the fact you will be older when reapplying.
“So, it’s recommended to start making your monthly contributions towards your pension as early on as possible.”
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