Workers in North are ‘worst at saving for pensions in whole UK’

Workers in Northern Ireland are saving less money for retirement that any other region of the UK, according to a new study published today.

Even though their retirement income expectations are lower than any other region of the country – at £21,443 (€27,050) – on current behaviour, their pension pot will last them just 3½ years in retirement.

The average for the UK as a whole, according to financial and technology services group True Potential, is for a fully funded retirement of five years on current income expectations, with the southeast of England faring best, at 5.9 years.

The year-long project following the savings habits of 8,000 people across the UK, shows that Northern Irish savers put aside just £1,653 towards their pensions last year. Over a working lifetime of 45 years, that would deliver a pension pot of £74,403.

That compares with the £428,860 necessary to fund an annual income of £21,443 over the average 20-year life expectancy for pensioners, meaning workers will either have to dramatically increase savings or accept a much lower income in retirement.