According to the Office for National Statistics’ Wealth and Assets Survey (data covering April 2020 to March 2022, released 24 January 2025), median pension wealth among households approaching retirement remains far short of what is needed to maintain a comfortable standard of living. Even a six-figure pension pot, once the standard 25% tax-free lump sum is withdrawn, will typically generate only a modest guaranteed income when converted to an annuity. For many people, this gap between what they have saved and what they will actually need in retirement comes as an unwelcome surprise — which is exactly why early, independent retirement planning matters.
* Based upon a male and female aged 65 with benefits escalating at 3% and provision for a 50% spouses pension
A pension is a long term investment the fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.
The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.
The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.