Only around two-fifths (42.6%) of households across Britain are on track for at least a moderate income in retirement, according to analysis.
Households in the East Midlands and London were found to be the least likely to be on track for a sufficient income for at least a moderate lifestyle in retirement, with 36.9% and 38.6% in those regions respectively being set for at least this standard of income in their later years, Hargreaves Lansdown found.
People were deemed to be on track for a moderate retirement income based on standards set by the Pensions and Lifetime Savings Association (PLSA), which say that a single person needs around £20,800 annually for a moderate income and a couple need around £30,600.
£20,800 for a single person
£30,600 for a couple
The PLSA previously set living standards to give people an idea what life in retirement looks like at three different levels – minimum, moderate and comfortable.
People on a moderate income have more financial security and flexibility than those on just the minimum, but they would not be able to afford the same luxuries as those on a “comfortable” retirement income of £33,600 for a single person and £49,700 for a couple.
Hargreaves Lansdown’s retirement figures are part of its savings and resilience barometer, which it compiles with Oxford Economics.
The modelling brings together data sources such as the Wealth and Assets survey and Financial Conduct Authority’s Financial Lives Survey to generate a picture of overall financial resilience.
Here are the percentages of households across Britain who are on track for a moderate income in retirement, according to Hargreaves Lansdown:
– Scotland, 41.5%
– North East, 42.8%
– North West, 44.2%
– Yorkshire and the Humber, 41.7%
– East Midlands, 36.9%
– West Midlands, 39.9%
– Wales, 41.7%
– South West, 43.5%
– South East, 51.3%
– London, 38.6%
– East of England, 45.1%