UK pensions crisis will hit the over-50s

THE UK pensions crisis is coming to a head as more than eight million people over 50 say they do not have enough savings to fund their retirement.

Nearly three in 10 have no private or company pension at all, leaving them dependent on the state pension, their partner’s savings or a potential inheritance, according to exclusive new research from over-50s specialist Sunlife.

Equity release director Simon Stanney said women are hardest hit. “More than one in three have no private pension, against one in five men.”

Separate research from Canada Life shows that almost one in four have either paused pension contributions since the Covid-19 lockdown or considered doing so.

Technical director Andrew Tully said a 50-year-old earning £50,000 and contributing 10 per cent of income could see their pot shrink by £70,000 after pausing payments for just three years. “This could inflict real damage on your quality of life in retirement.”

Tully said those forced to take a payment holiday must play catch-up by making extra contributions as soon as they can. “This won’t be easy, particularly for older workers.”

Tomorrow sees the start of Pension Awareness Week, designed to help people make the most of their savings.

Jonathan Bland at Pension Geeks, which launched the awareness initiative in 2014, said the global pandemic presents new challenges. “People need to understand how Covid-19 has affected their pensions and other money issues.”