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Nearly half of UK adults do not save for retirement

Many cite financial struggles as the main reason for not contributing to pensions in the UK.

July 26, 2025 at 11:06 PM

'Why I'm one of millions of UK adults not paying in'

A significant portion of UK adults are not contributing to pensions due to immediate financial concerns.

UK adults struggle to save for retirement amidst financial pressures

Almost half of working-age adults in the UK are not contributing to private or workplace pensions. The government revealed that self-employed individuals, low earners, and women are particularly affected. Many cite day-to-day financial survival as a reason for not saving for retirement. One interviewee, 29-year-old Mohaimon, mentioned prioritizing saving for a home deposit over retirement savings, stating that financial decisions are largely "survival based." Another participant, Saira Amir, a self-employed stylist, struggles to cover daily expenses and feels unable to save for a pension, especially as a single mother. With state pensions offering limited financial security, individuals without private pensions may find themselves in challenging positions when they retire.

Key Takeaways

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Almost half of UK adults do not contribute to pensions.

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Self-employed individuals and low earners are particularly affected.

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Many prioritize immediate needs over long-term savings.

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State pension may not provide sufficient income for retirees.

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Auto-enrollment has mixed success for certain demographics.

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Long-term financial planning is hindered by day-to-day survival pressures.

"I am more worried about surviving day-to-day than worrying about the future."

Mohaimon explains his struggle with prioritizing basic survival over long-term savings.

"If I could afford to save for a pension I would, but daily expenses hold me back."

Saira Amir shares her financial challenges as a single mother and self-employed stylist.

The stark reality of retirement planning in the UK highlights a broader societal issue. Many individuals face immediate financial burdens that overshadow long-term savings for retirement. The disparity in pension participation raises questions about financial literacy, economic stability, and policy effectiveness in supporting vulnerable workers. It is evident that without targeted initiatives, those most at risk of inadequate retirement savings will bear the brunt of future economic challenges. Moreover, as the landscape of work changes with more people embracing gig and self-employment, the government may need to reassess its approach to auto-enrollment and overall pension inclusivity.