Are You Not Saving Enough for Retirement?

Tuesday 21 July, 2026

Here’s What You Can Do About It…

For many people across the UK, retirement can still feel a long way off. Day-to-day expenses, rising household bills, mortgages, childcare and the general cost of living often take priority over long-term financial planning. Yet recent reports suggest that millions of people may not be saving enough into pensions and other long-term investments to achieve the kind of retirement they hope for.

The important thing to remember is that you are certainly not alone if you feel behind with your retirement savings. The good news is that there are often practical steps that can be taken, no matter your age or circumstances. With the right pension planning and pension advice, even small changes today can make a meaningful difference over time*.

Joe Wicks, Independent Financial Adviser and Pension Adviser, St Albans said:

“We regularly speak to people who worry they have left pension planning a little late, but in many cases there are still positive steps available. Reviewing your pensions, understanding your goals and taking professional pension advice can help bring clarity and confidence for the future.”

Recent findings from the UK Government’s Pensions Commission highlighted the scale of the issue. The report suggested that around 45% of working-age adults are under saving for retirement, with concerns that future generations may face greater financial pressure in later life if action is not taken.

Joe Wicks, Independent Financial Adviser and Pension Adviser in St Albans, added:

“In St Albans, we regularly speak to people who are balancing pension planning with some very real financial pressures, including large mortgages, higher living costs and busy family commitments. As a result, many local clients ask us whether they are doing enough to prepare for retirement. In many cases, even a simple review of existing pensions and long-term savings can help bring clarity and highlight steps that may improve their future financial position*.”

* The value of pensions linked to investments (and any income from them) can go down as well as up and returns are not guaranteed.

Why Has This Happened?

There is no single reason why pension saving has become such a challenge. Instead, several financial and social factors have gradually combined over many years.

One of the biggest issues is affordability. Many households are facing higher living costs, increased housing expenses and general financial pressures, leaving less disposable income available for long-term savings. Younger generations in particular often face larger rental costs and delayed home ownership, which can reduce their ability to contribute more towards pensions.

Automatic enrolment has certainly improved pension participation levels in the UK, encouraging more people to save into workplace pensions. However, experts have raised concerns that minimum contribution levels may still not be enough to provide the retirement income many people expect.

Another factor is that pensions can sometimes feel confusing or distant. Many people simply do not engage with their pension pots regularly because retirement seems too far away to worry about today. Unfortunately, delaying pension planning can reduce the benefits of long-term compound growth and investment returns.

Career breaks, part-time employment and self-employment can also affect retirement savings. Those taking time away from work for caring responsibilities or family commitments may miss years of pension contributions, while self-employed individuals are statistically less likely to contribute consistently into pensions.

Is the Problem Getting Worse?

In some respects, yes. Official reports suggest the retirement savings gap could widen in the coming decades if contribution levels do not improve. While workplace pension enrolment has increased significantly, there are concerns that many people are still contributing only the minimum required amount.

Longer life expectancy is also an important consideration. People are generally living longer than previous generations, meaning retirement savings may need to support lifestyles for 20 to 30 years or more after stopping work. This naturally increases the amount many people may need to save for their pension.

Economic uncertainty can also lead people to pause or reduce pension contributions when finances become tight. While understandable, repeatedly delaying pension saving can have a significant long-term impact.

At the same time, retirement expectations have changed. Many people understandably hope for flexibility, travel, hobbies and financial independence in later life. Achieving these goals often requires careful pension planning and regular reviews throughout working life.

Why Are We Neglecting Our Pension Pots?

Pensions are often one of the easiest financial areas to ignore because retirement can feel abstract when compared to immediate financial commitments. For many people, pensions sit quietly in the background without regular attention.

There is also a psychological element involved. Financial planning can sometimes feel overwhelming, especially if someone believes they have not saved enough already. In some cases, people avoid reviewing pensions altogether because they fear discovering they are behind.

Others may assume that the State Pension alone will provide sufficient income in retirement. While the State Pension can form an important foundation, it may not fully support the lifestyle many people hope to enjoy later in life.

Another common issue is lost or forgotten pension pots from previous employers. Over the course of a career, individuals may build several workplace pensions without fully understanding how they are performing or whether they remain suitable for their retirement goals.

This is where speaking with a pension adviser can often help. Professional pension advice can provide clarity, explain options in straightforward terms and help people feel more in control of their financial future.

What Should You Be Doing?

The first step is not to panic. Retirement planning is rarely about making dramatic overnight changes. Instead, it is often about making informed decisions consistently over time.

A good starting point is to review your current pension arrangements. Understanding how much you have saved, where your pensions are invested and what level of retirement income they may provide can help you build a clearer picture.

You may also want to consider:

Increasing pension contributions gradually when affordable
Reviewing old workplace pensions
Checking whether your investments remain suitable
Understanding your likely retirement income needs
Taking advantage of employer pension contributions
Reviewing tax relief opportunities
Seeking professional pension advice for tailored guidance

Even relatively modest increases in contributions can potentially make a considerable difference over the long term thanks to investment growth and compound returns*.

* The value of pensions linked to investments (and any income from them) can go down as well as up and returns are not guaranteed.

It is also important to remember that retirement planning is not purely about pensions alone. Broader financial planning, including savings, investments, tax planning and estate planning, can all play a role in helping create financial security later in life.

The Value of Professional Pension Advice

Pensions have become increasingly complex over the years, particularly with changing legislation, tax allowances and different retirement income options. A professional pension adviser can help explain your choices clearly and help you build a strategy that reflects your personal goals and circumstances.

For some people, advice may involve consolidating older pensions. For others, it may focus on increasing retirement contributions, reviewing investment risk or planning for flexible retirement income through pension drawdown.

Importantly, pension advice is not just for those approaching retirement. Seeking guidance earlier can often provide greater opportunities to improve long-term outcomes.

Looking Ahead With Confidence

While the headlines around retirement saving can sometimes sound worrying, it is important to remember that taking action early, even in small steps, can make a real difference over time.

Whether you are just beginning pension planning, reviewing existing arrangements or wondering if you are saving enough, our financial advisers can offer the professional pension advice that can help provide reassurance and direction. Retirement planning is ultimately about creating future financial freedom and peace of mind, allowing you to enjoy later life with greater confidence and security.

Please note: This article is for general information only and does not constitute personal financial advice. Pension and tax rules can change, and their impact depends on individual circumstances. For personalised advice, you should consult a regulated financial adviser authorised by the Financial Conduct Authority. The Financial Conduct Authority does not regulate estate planning or tax advice. A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless the plan has a protected pension age). The value of your investments (and any income from them) can go down as well as up which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits.

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