"..the best approach remains the same now as it did back in 2008 – save as much as possible into a pension as early as possible in your working life"
- Prudential’s unique Class of… research has tracked the changing retirement finances and aspirations of new retirees since 2008
- Just one in seven of the Class of 2017 have no savings compared with nearly one in four retiring in 2008
- Expected incomes among new retirees still below the pre-financial crisis high
- More than half retired with the majority of their income from a final salary scheme in 2008 compared with 42 per cent this year
The number of people retiring without a pension has fallen significantly over the last 10 years, according to Prudential's unique Class of… research, which has tracked the retirement finances, plans and aspirations of people retiring each year since 2008.
Its data shows one in four (23 per cent) of those retiring in 2008 had no pension savings at all but this has dropped to just one in seven (14 per cent) of those planning to retire in 2017, reflecting the success of Government and employer initiatives to encourage saving, such as automatic-enrolment.
Women appear to have led the way in reversing the pension saving trend - in 2008 a shocking 32 per cent of women stopped work with no private pension savings, compared with 19 per cent in 2017. Just over one in six men retired without a pension in 2008 (17 per cent) while just nine per cent will do so this year.
The growth in pension saving rates has taken place against a backdrop of massive upheaval in UK pension saving rules, such as pension freedoms and the abolishment of the default retirement age. At the same time there has been worldwide financial volatility and political upheaval, including three general elections and Brexit at home as well as the Eurozone crisis and the rise of populist politics overseas.