‘Stark’ disparity between intragenerational pension saving

There is a ‘stark’ disparity between intragenerational pension saving, with some people saving up to five times more in their pension than the average for their age group, analysis from PensionBee has found.

The research revealed that today’s youngest working generation, those born between 1996 and 2012, had an average pension pot of £2,304.

However, the top 10 per cent of this cohort have saved an average pension pot of £10,407, more than four times the amount saved by their average peers.

The research showed that this disparity grows with age, with the average millennial, those born between 1981 and 1996, having a pension pot that stands at £12,150.

In comparison, the top 10 per cent of millennials have accumulated an average of £62,694 in their retirement accounts, more than five times that of their average peers.

Meanwhile, those closest to accessing their pension, those born between 1965 and 1980, have an average pension pot of £33,263, while the top 10 per cent of this cohort have an average of £168,550 in their pension pots, more than five times that of their average peers.

In addition to this research, PensionBee surveyed people who self-identified as having saved ‘somewhat’ or ‘significantly’ more than average, and found that taking advantage of matched employer contribution was the most popular method of boosting savings, with 27 per cent citing this as their method.

One fifth (20 per cent) said they reduced monthly expenses to save, while 19 per cent said that increasing contributions after receiving a bonus or pay rise.

Commenting on the research, PensionBee director of public affairs, Becky O’Connor, said it was never too late to “take charge” of pension savings, regardless of retirement ambitions or age.

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