SJP Retirement Report 2025
The UK is facing a growing retirement savings gap, and for many, the future may be far less secure than expected.
The shift from defined benefit to defined contribution pensions has transferred the responsibility of saving for retirement to individuals. Unfortunately, many people - particularly those in low-wage, part-time roles, and women - are falling behind. Rising living costs are only adding to the difficulty of saving for the future.
But there’s good news: it’s not too late. Practical steps today can help you improve your retirement outlook and bring you closer to achieving your goals.
“Research carried out on our behalf by Opinium into the financial health of the nation highlights how the level of engagement with retirement savings remains way too low. Most people lack a clear understanding of how much they need to put aside to fund a reasonable standard of living in retirement with many severely underestimating the amount of money required.”
Alexandra Loydon,Director of Advice Policy & Operations, St. James’s Place
Key insights from the 2025 report
Many people are overestimating their pension wealth, often by significant amounts, with younger workers and those in mid-career particularly at risk of falling short of their retirement goals.
While the required savings for a moderate lifestyle is around £500,0001, many individuals, including those nearing retirement, are still underestimating how much they need to achieve a comfortable future. Additionally, pension disengagement remains a significant barrier, with many adults not knowing their pension balance or reviewing it regularly. However, we found that those who have a financial plan are more confident about their retirement, more likely to save, and more engaged with their pension, highlighting the importance of proactive financial planning.
What you can do today: Practical steps for a better retirement
Review your pension at least once a year.
Staying on top of your pension balance will help you stay on track with your retirement goals.
Know your target savings.
A moderate lifestyle in retirement requires approximately £500,0001 in pension savings. Use this as a goal to aim for when planning your retirement.
Start saving more now.
If possible, increase your monthly contributions to help you stay on track towards meeting your retirement goals.
The value of a St. James’s Place investment will be directly linked to the performance of the funds you select and the value can, therefore, go down as well as up. You may get back less than you invested.
1 Pensions and Lifetime Savings Association (PLSA), 2024
Opinium surveyed 6,000 UK adults nationwide in two polls between 23rd December 2024 and 17th February 2025. Quotas and post-weighting were applied to the sample to make the dataset representative of the UK adult population.
