Average pension pot size in Wales less than national average

NEW analysis of more than 198,000 PensionBee customers, reveals savers in Wales have an average pension pot size of £13,563, a quarter less than the national average of £17,379.

The data shows that savers in Northern Ireland have saved the least towards their retirement, with typically only £12,011 in their pension pots, 37% less than the UK average.

Gender pension gap by region

PensionBee found that a gender pension gap exists in every UK region, with savers in Wales also having one of the largest gender pension gaps, with men having saved 43% more than women. The average male savings pot stands at £15,982, while the average female has just £9,120 saved towards retirement.

Analysis shows that savers in Northern Ireland (£14,080 versus £7,926), Scotland (£18,096 versus £10,159) and the East Midlands (£18,461 versus £10,402) share the biggest gaps of 44%, exceeding the national average of 38%.

Expected pension pot in retirement

PensionBee also calculated the expected retirement pot of each age group, based on certain assumptions. This analysis found that those nearest to retirement, who have the most pressing financial needs, could potentially retire on significantly smaller pensions than their younger counterparts.

On average, savers aged 50 and over look set to retire on the smallest personal pensions of £78,523 by the time they reach 66. Meanwhile, those under the age of 30 are expected to amass pots worth £180,055, on average, by the time they reach the age of 66.

Becky O’Connor, Director of Public Affairs at PensionBee, commented: “Regional pension inequality and gender pension disparity is rife. Retirement outcomes are a mixed bag across the country, mainly as a result of different income levels throughout working life.

People in some parts of the country will therefore be more dependent on the State Pension for retirement than people in other parts of the country.

For younger people, the forecast based on their current pot size, is that their income would give them a basic to moderate living standard according to the Pensions and Lifetime Savings Association’s guidelines.”