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‘I don’t think I’ll ever retire’: the workers struggling to save for old age
A growing number of UK workers are struggling to save for retirement, with the Pensions Commission warning that around 15 million people are not putting away enough for old age, a figure it fears could rise to 19 million without urgent government action. The Guardian spoke to readers, including those in part-time work, freelancers and the self-employed, who described being unable to afford pension contributions because of the cost of living, unstable incomes or debts, leaving many fearing they will never be able to stop working.
The commission's report highlights stark gender and employment disparities: women approaching retirement hold private pension pots roughly half the size of men's on average, with median pension wealth of £81,000 compared with £156,000 for men, while only 4% of self-employed workers are saving into a pension. Case studies include a 35-year-old library worker in Oxford with just £5,000 saved despite working more than full-time, and a 54-year-old freelance graphic designer in London still repaying a £30,000 Covid-era loan, who says financial setbacks from the financial crash, the pandemic and recent wars have repeatedly wiped out his savings.
In short
- 15 million UK adults undersaving for retirement, commission warns
- Women's pension pots average half the size of men's
- Just 4% of self-employed workers save into a pension
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
These statistics reveal systemic failures requiring urgent intervention. Workers in precarious employment earning modest incomes cannot achieve adequate pension savings whilst managing essential costs and debt accumulated from prior economic crises. The stark gender and self-employment disparities point to structural inequality rather than individual failing. Meaningful solutions require policy reform—stronger employer pension contributions, wage growth mechanisms, and targeted support during economic shocks—because individual effort alone cannot overcome the systemic barriers many workers face.
The case against
Whilst sympathetic to these personal struggles, expanded government mandates and spending cannot guarantee improved outcomes and risk creating fiscal strain and market distortions. The sustainable path forward involves enabling genuine economic growth that naturally raises incomes, reducing regulations constraining small business and freelance earnings, and individuals making difficult but necessary financial choices within their means. Durable retirement security ultimately depends on personal financial responsibility and policies genuinely expanding economic opportunity, rather than government attempting to solve every financial challenge through intervention.
Explained simply
In the UK, most people are expected to save money during their working years into a pension, which they then draw on in retirement. Private pension savings are meant to supplement the state pension, a government benefit people receive from a certain age. The ability to put money aside for a pension depends on having enough income left over after paying for essential costs like housing, food and energy.
A substantial portion of UK workers currently cannot afford to save for retirement. The Pensions Commission has warned that around 15 million people are not putting away enough for old age, with fears this could rise to 19 million without urgent action. Workers in unstable employment—particularly those doing part-time work, freelancing or self-employment—are hardest hit, as they struggle with irregular incomes, high living costs and existing debts.
This poses serious risks for the future. Without adequate pension savings, millions may be unable to retire and could face poverty in old age. The crisis also reveals wider inequalities: women hold roughly half the pension savings of men on average, and very few self-employed workers are saving into pensions at all, meaning retirement security is becoming increasingly unequal.