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Millions of workers overestimate pay days left before retirement – Aviva

The survey revealed more than a quarter (27%) of employees had no idea how many pay days remained before they intended to stop working.

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Millions of UK workers are overestimating how many pay days they have left until retirement, according to research from Aviva.

The survey, which looked at employees paid monthly, revealed more than a quarter (27%) had no idea how many pay days remained before they intended to stop working.

Almost a third (31%) of those aged 55 and over said they didn’t know how many pay days they had left, while among those aged 45 to 54 the figure rose to 35%. 

17% of people aged 55 and over, who could claim their state pension in around 12 years, believed they had more than 250 pay days left – equal to 21 years of pay cheques. 

One in 20 (5%) thought they had over 500 pay days left, which would mean working for another 41 years.

More than a third (36%) of 25 to 34-year-olds had already calculated their remaining pay days – the highest proportion of any age group. 

When asked to reflect on the number of pay days left, 28% said they felt concerned, and 18% admitted they were shocked.

A quarter (25%) said realising the number motivated them to take action. 

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Younger workers were the most likely to feel both shocked and motivated, with 33% of 25 to 34-year-olds saying they are surprised by the number, but 36% feel inspired to do something about it.

On average, UK workers expected to retire at 64. 

Nearly three in five (59%) of those aged 55 and over believed they would retire at 65 or later, and one in ten expected to work beyond 68. 

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One in 10 workers said they didn’t think they would ever fully retire, while 6% were confident they would retire before 60. 

45% of 18 to 24-year-olds were confident they would retire between 60 and 64.

Nearly seven in 10 (69%) of 25 to 34-year-olds felt confident their pension would be enough, compared to 41% of those aged 45 to 54 and 46% of those 55 and over.

Alistair McQueen, head of savings & retirement at Aviva, said: “Counting pay days is a simple but powerful way to bring retirement planning into focus. 

“Many people overestimate how long they have left to save, which can lead to shortfalls later. 

“Thinking in terms of paydays makes the challenge feel more real and immediate.”

McQueen added: “If you believe you have hundreds of pay days left, you may delay acting – but the reality is often very different. 

“We encourage everyone to take stock now, review their pension contributions, and consider what steps they can take today. 

“The sooner you start planning, the better prepared you’ll be for the retirement you want.”

Additionally, data found one in six (16%) never check their pension pot, with a further 17% only checking annually.

Half (51%) review their savings quarterly or more. 

Younger workers checked more often, with 67% of 25 to 34-year-olds reviewing at least quarterly, and 17% checking weekly.

24% admitted they didn’t know how much they would need in their pension pot by the time they retire. 

Almost a third (30%) believed they could live on less than £250,000 – a sum that would buy an annuity of around £13,700 a year at today’s rates, or £1,145 per month.

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