One in ten people over 55 don’t have a pension, according to research by MoneySuperMarket.
The study by the UK’s leading price comparison site analyses nearly 300,000 life insurance enquiries, combined with consumer responses to MoneySuperMarket’s Prepared for Life tool. The data reveals that 17% of those aged 45-54 also don’t have a pension plan, as well as 29% of 35-44-year olds. Across all age groups, 21% don’t have a pension1.
According to the data, nearly two thirds of enquirers across all age groups may be underestimating how much of a pension they will need for retirement, with one in five (19%) saying they could manage with a pension pot of just £50,0001. This is 81% less than the recommended £262,5002.
Nearly half (46%) of those aged 55 and over have also not yet written a will, which represents a 20% increase since 2018 where the figure stood at only 26%. Of those between 45-54, 57% don’t have a will, rising to three-quarters (75%) for 35-44-year-olds1.
Data from MoneySuperMarket’s Prepared for Life tool shows that three-fifths (60%) of those aged 55 and over do not have life insurance. Life insurance premiums for those over 60 cost £42 on average. Looking across the UK, premiums are highest in Taunton for those over the age of 60, costing £56.05 a month on average3. At the other end of the table, people in the same age category in Ilford pay 40% less, at £33.65 a month on average3.
Top 10 locations with highest life insurance premiums for 60+:
|Area||Average life insurance premiums|
|TA – Taunton||£56.05|
|M – Manchester||£54.53|
|SR – Sunderland||£53.54|
|WF – Wakefield||£51.94|
|IV – Inverness||£51.55|
|DN – Doncaster||£50.83|
|BB – Blackburn||£50.69|
|FY – Blackpool||£50.53|
|HD – Huddersfield||£50.40|
|BD – Bradford||£50.36|
Neal Cross, life insurance expert at MoneySuperMarket, commented: “It’s interesting to see the number of people enquiring about life insurance across different age groups that are yet to prepare their financial futures. The importance of life insurance, pensions and wills are often overlooked, which could explain the disparity between the recommended pension pot of £262,0002 and how much people believe they’d need to get by.
“Life insurance premiums increase by age, therefore, the longer you wait to get it, the higher your monthly payments are likely to be. Similarly, if you stop paying for life insurance and repurchase it at a later date, your premiums will still go up, purely down to the fact you will be older when reapplying. So, it’s recommended to start making your monthly contributions towards your pension as early on as possible making sure your next of kin are covered in the event you pass away.”
To find out how finally prepared for the next stages in life, visit the MoneySuperMarket website.