Ryan FowlerA new study by PensionBee has revealed notable increases in the average sizes of UK pension pots. Analyzing over 240,000 customer accounts, the findings show a 16% rise in average pension values, from £17,379 in March 2023 to £20,077 in March 2024.
Regional disparities in pension accumulations were evident, with savers in the North West witnessing the most substantial growth—an 18% increase to £15,651. In contrast, the South East led in terms of overall savings, boasting an average pot size of £25,734, 28% above the national average. Greater London also surpassed the national average by 17%, with pots averaging £23,393, likely influenced by higher local incomes.
The gender pension gap persists, with disparities particularly stark in Northern Ireland where women’s average savings are 44% less than men’s. London showed a relatively smaller gap at 29%, with women’s pensions averaging £18,786 compared to men’s £26,646, possibly aided by the region’s higher average salaries for women.
Looking ahead, PensionBee predicts that younger savers under 30 could retire with significantly larger pensions, potentially reaching £195,058 by age 66, benefitting from longer saving periods and multiple pension accumulations. However, those closer to retirement age are expected to have smaller pots, averaging £87,887.
Becky O’Connor, director of public affairs at PensionBee, remarked on the positive trends:
“Pension perseverance is paying off. Savers are diligently building their pots and appear to be prioritising pensions more than ever. This is great news for the retirement prospects of today’s workers, especially the younger cohort who will benefit from being under auto enrolment for most of their working lives.”
