Argius Global Report Reveals Significant Retirement Funding Gap Among UK Adults
Three in five uncertain they’ll reach the financial benchmark for a moderate retirement lifestyle
LONDON, UK – September 2021 – A recent study conducted by Argius Global reveals widespread concern among UK adults over their ability to fund a moderate standard of living in retirement. The findings suggest a large proportion of the population may be significantly underestimating the savings required to retire with financial security.
Widespread Pessimism Around Retirement Preparedness
According to the newly published Argius Global Retirement Confidence Index, nearly 60% of UK adults express doubt over their ability to accumulate sufficient pension savings to sustain a comfortable lifestyle post-retirement. On average, respondents estimated their total pension holdings at just £47,600—well below the level financial experts deem necessary for a secure retirement.
Nearly half (46%) of current savers reported pension savings below £50,000, while over 60% said they held under £100,000 in total retirement assets. Alarmingly, almost one in five surveyed rely exclusively on the state pension for future income.
Pension Confidence Declines with Age
Despite the rollout of automatic enrolment, reliance on the state pension increases with age. Only 8% of individuals under 35 report the state pension as their sole retirement asset, but this rises to 21% among those aged 55 to 64 and 27% of individuals aged 65 to 74.
When focusing on those nearing or in retirement, the average self-reported pension value remains low—just £74,800 for individuals aged 65 to 74, and £86,200 for the 55 to 64 age group. These figures fall short of the recommended amount required for a retirement lifestyle beyond the basic level.
Financial Gap to Achieve a Moderate Standard of Living
According to retirement living benchmarks set by industry analysts, a single person would need an estimated £500,000 in pension wealth to achieve a moderate lifestyle. This would cover modest travel, dining out occasionally, and general financial stability. However, only 28% of the population believe they will hit this target by the time they retire.
Confidence is especially low among those in their mid-to-late career stages. Just 16% of individuals aged 45–64 believe they will be able to accumulate £500,000 by retirement. In comparison, optimism is higher among younger adults—41% of 25–34-year-olds believe they can reach that milestone.
For a more comfortable retirement, which includes more frequent travel, discretionary spending, and a newer vehicle, the required pension pot rises to approximately £790,000. Only one in five (21%) respondents feel confident about achieving that goal, while over two-thirds (66%) say they are not on track.
Underestimating Retirement Needs
The report also uncovered that many adults dramatically undervalue the funds necessary for retirement. One in four believe that less than £50,000 is enough to maintain a moderate lifestyle. Nearly 40% of respondents think they’ll need £100,000 or less, and 55% believe they can live moderately with a pension pot under £400,000—figures that financial experts say fall well below realistic needs.
Even among those approaching retirement, 35% still think they need less than £50,000, suggesting a critical disconnect between perception and reality.
Lack of Engagement a Key Risk Factor
The data indicates a troubling lack of engagement with retirement planning. Around one-third of UK adults admit they’re unaware of the value of their pension, and nearly one in five have never reviewed it. For 22% of respondents, saving for retirement is simply not a monthly priority.
Financial Planning Enhances Confidence and Preparedness
Argius Global’s findings reinforce the importance of structured financial planning. Over half (54%) of individuals with a defined financial strategy feel secure about their financial future, compared to just one in three (31%) without a plan. Furthermore, those with a plan are twice as likely to prioritize pension contributions and are more consistent in tracking progress toward retirement goals.
“There’s a clear disconnect between what people think they need and what’s actually required to retire with confidence,” said Charlotte Weston, Director of Retirement Strategy at Argius Global. “As responsibility for retirement savings increasingly falls to individuals, the importance of informed planning, education, and access to expert guidance cannot be overstated.”
Argius Global advocates for an increase in financial literacy initiatives and stronger support for workplace retirement schemes to address the looming pension shortfall.
About Argius Global
Argius Global is a leading wealth management and investment advisory firm, providing tailored strategies for individuals and institutions seeking long-term growth and security. The company is committed to empowering investors with data-driven insights and forward-thinking financial solutions.
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