Scotland and the North of England are the most ‘financially prepared’ regions in the UK, according to a new analysis of the retirement savings scene.
The Friends Life’s UK Retirement Savings Map which documents the levels of financial readiness for retirement across the country, includes an in-depth analysis of people’s current saving methods, financial plans for the future and attitudes towards future income needs.
So whilst the North East, North West and Scotland were found to be some of the most financially-savvy, the East Midlands, East of England and the South West regions appear much less so, with almost three in five not having a pension.
The research also found differences in attitudes towards retirement saving. People in the South West and North East England tended to be more aware of the income needed in retirement, compared to those in the East of England and Greater London who were found to be the least aware. An income shortfall for these areas was calculated at £105.38 per week (East of England) and £123.85 per week (Greater London).
Regional break down
Scotland and the North of England
- Most financially prepared regions in the UK
- Scottish savers were found to invest the maximum they could afford into their pensions.
East Midlands, East of England and the South West
- Three in five people in these regions do not have a pension
- Those in the East of England and Greater London were likely to have a higher than average income shortfall.
West Midlands and the South East
- In these regions, savers were found to invest the maximum possible amount they can afford into their pension pots.
However, the analysis found that although three in five people across the UK did have some sort of pension, many UK savers - regardless of region - were still facing a financial shortfall of around £96.67 per week due to insufficient retirement savings and people underestimating housing and living costs.
Commenting on the research, Martin Parish, Senior Corporate Benefits Consultant at Aon Employee Benefits said: “This highlights the general lack of awareness about pensions and retirement income needs. Although automatic enrolment has been introduced to increase the number of people saving for their financial future, experience with employees continues to confirm the lack of awareness about savings rates required to produce an adequate retirement income. The research really underpins the importance of engagement and financial education over the long term not just at retirement.”
Aon UK Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales. Registered number: 00210725. Registered Office: The Aon Centre, The Leadenhall Building, 122 Leadenhall Street, London EC3V 4AN.