How much do I need to retire?
Employers and their HR/People Management Teams play a crucial role in guiding employees towards financial security—and retirement readiness is a prime area to impact morale, retention, and wellbeing. But one common question always arises:
How much is enough to have a comfortable retirement?
The UK is currently experiencing a ‘savings crisis’. As many as 17 million people are not saving enough to achieve the retirement they want. The next twenty years could be when the effects of the savings crisis really starts to bite
Recent analysis from the DWP shows around 15 million UK adults are under-saving, with private pension income projected to fall by 8% by 2050—leaving future retirees worse off .
Alarmingly, nearly 40–45% of working-age individuals are currently saving nothing at all.
For your employees today in their 30s, 40s, and 50s, that shortfall isn’t hypothetical—it’s imminent.
Millennials are struggling to prioritise retirement
Research shows that millennials—now in their late 20s to early 40s—are finding it increasingly difficult to plan for retirement as immediate financial concerns take priority.
A survey of 4,000 UK workers found that nearly six in ten (59%) millennials are struggling to save for later life. In comparison, 48% of Generation Z (ages 18–26) and 39% of Generation X (ages 41–56) reported similar difficulties.
A range of factors contribute to this challenge. One in four millennials (25%) say irregular income is the main obstacle, while another 24% point to the financial strain of childcare.
With rising housing and childcare costs adding to the burden, many millennials feel that preparing for retirement is out of reach—pushed aside by the demands of the here and now.
How much do your employees need for retirement?
According to the Pensions and Lifetime Savings Association, individuals typically require a combined £31,300/year for a moderate retirement or £43,100/year for a comfortable one.
Given the average state pension is far below this threshold—and many workplace contributions stay at minimal levels—it’s clear most employees are at risk of underfunding their futures.
What this means for HR
With a significant portion of workers under-prepared, HR teams have a business opportunity—and responsibility—to champion retirement readiness.
Promoting tailored retirement workshops, alongside tools like a financial wellbeing portal packed with useful calculators or a one-to-one meeting with a a money guide can help shift the dial. Benefits include reduced financial stress and higher engagement.
Pre-retirement workshops
Our Pre Retirement Planning workshops offer your employees the chance to better prepare for their retirement.
- Financial Planning for Retirement: Understand pensions, tax, investment, and estate planning.
Planning Your Retirement Lifestyle: Navigate lifestyle changes, timing, health, and purpose.
These workshops are delivered both online and onsite by expert speakers, in half‑day or full‑day formats.
Explore Planned Future Retirement Events to learn more about delivering a session tailored for your workforce.
Employee retirement takeaways for HR teams
The UK is facing a retirement savings crisis—millions at risk of falling short.
Employees typically need £30–45k/year in retirement to maintain a moderate to comfortable lifestyle.
HR can drive measurable impact using specialist workshops, financial wellbeing portals, and e-learning.
Investing in retirement readiness today pays dividends—in productivity, engagement, and loyalty.
Empower your employees to bridge the gap between their current savings and what they’ll need.
With the right combination of structured learning and strategic support, HR can significantly reduce future financial stress across your organisation.
