28% of over-55s completely reliant on the state pension

• New research, commissioned by interactive investor, shows that 28% of over-55s have no other pension saved apart from the state pension.
• This highlights the crucial importance of the state pension triple lock to help poorer pensioners cover their costs in a time of spiralling inflation.
• The research forms part of new pension report “Show Me My Money 2023” to be launched next week on 19 September 2023.
• We have a launch event next week packed with stacks of interesting pensions data and guests and it’s a must come event! * - more information in the notes to editors

Opinium questioned 2,000 nationally representative UK adults on our behalf between 26 May and 30 May 2023.

Alice Guy, Head of Pensions and Savings, interactive investor says: “Our research reveals a desperate situation for many older workers, more than one in four (28%) of whom have no other pension savings apart from the state pension. It’s especially worrying because those in their late 50s or older have few options and little time to build up pension wealth. And even among those relying on the state pension, there will be many who don’t get the full amount due to time out from the workplace.

• Invest with ii: Open a Low Cost SIPP | What is a SIPP | Interactive investor Offers

“At a time when the triple lock is under debate, our research shines a light on just how many older people rely on the state pension as their sole source of income in retirement. Auto-enrolment rules, which were introduced in 2012, came in too late to help many older workers, many of whom spent most of their working life with no access to a workplace pension.

“The state pension system in the UK is less generous than many other countries in Europe, providing a flat, basic income, rather than being based on contributions like many other countries. This means pensioners need to save into a workplace or private pension on top to give them enough for a comfortable retirement.

“This new data forms part of a bigger piece of research to be published in our “Show Me My Money 2023” pension report next week. Our research will reveal a pension emergency for the over-55s, who have more pension blind spots, than younger pension savers, despite being closer to, or even already, in retirement. This lack of pension knowledge, even for those with workplace pension wealth, could jeopardise their financial resilience in retirement.”