Saving enough money for retirement can feel like climbing a mountain – but for single people it can be particularly an uphill struggle – and nearly one in five don’t think they’ll ever be able to afford to retire.
Scottish Widows has found 19% of single people can’t see a situation where they’ll ever be able to stop work.
This compares with one in seven (13%) people who are married or living with a partner who don’t think they’ll ever have enough money put aside to retire.
Researchers found two-fifths (42%) of people who are married or living with a partner feel optimistic about retirement, compared with just three in 10 (30%) future retirees who are single.
Half (50%) of those with a spouse say they’ve carried out research to prepare for retirement, versus 37% of single people.
The majority (57%) of people who are married or cohabiting have also checked their state pension entitlement, compared with a third (33%) of single people.
People who are married or living with a partner are also more likely to have received financial advice, with a quarter (25%) saying they have done so, compared with 13% of single people.
They also feel more confident about managing their savings in retirement, with seven in 10 (70%) people who have a spouse feeling confident, compared with 51% of people who are single, according to the YouGov survey of more than 5,000 people across the UK.
Susan Hope, a retirement expert at Scottish Widows, says: “Our research shows that there’s a close link between financial security and relationship status.”
She adds: “If you’re married or in a relationship there may be more options to share costs and the potential to combine savings resources that a single person may not have, even if couples might need a bigger fund overall.”
There are some ways that people may be able to get to grips with their pension pot, whether they are single or in a couple:
1. Find out what you’re on track to receive
Firstly, Hope suggests making the most of anything you’re entitled to.
She says: “Downloading the HMRC (HM Revenue & Customs) app is a quick and easy way to see in a few taps your state pension retirement age, how much state pension you are entitled to and if you have any national insurance gaps.”
The “check your state pension forecast” service on gov.uk is another way for people to check what their pension will be in retirement.
There is also an important deadline looming to plug any gaps in national insurance contributions going back to 2006, which, for some people, could boost their state pension entitlement.
People have until until April 5 this year to check their national insurance records and fill any gaps stretching as far back as 2006.
From April 6, 2025, people will only be able to make voluntary national insurance contributions for the previous six tax years, in line with normal time limits.
If you’re struggling to get through before the deadline though, you could fill out a callback request form on gov.uk. This means people may still be able to pay voluntary national insurance contributions after the deadline has passed – provided that the callback request is made by the April 5 deadline.
People need generally need to build up 35 years of contributions to get the full new state pension.
However, depending on their circumstances, they may be able to receive credits if they are not paying national insurance. More information about credits is available at gov.uk.
“Taking action now could help you maximise your state pension entitlement,” says Hope.
2. Look at the bigger picture
If you’re part of a couple, Hope suggests having discussions around your earnings and any debts that need paying off, to help maximise your overall income in later life.
If you work for an employer, workplace benefits and perks could be something else to look at, to see if you can make your money stretch further.
Hope says: “Much of this is still important for those not looking at a joint financial picture, so understanding what you might need versus what you have or are on track to have and whether that’s enough will help get you in the right position.”
People who are aged 50 and over may benefit from a free consultation with the Government-backed Pension Wise service.
There are also tools and information available online, such as calculators from pension providers and the retirement living standards set out by the Pensions and Lifetime Savings Association (PLSA).
The standards have been developed to give people an idea of what kind of lifestyle they might be on track for in retirement.
Some people may also feel they could benefit from paying for financial advice tailored to their own circumstances and needs.
People may also want to consider different pension options. For example, Hope highlights private pensions that can be set up online, as well as retirement annuities, which give people a guaranteed income in retirement.
Each option will have its own pros and cons, so weighing them up is important.
Some people may also want to use a combination of income sources to fund their retirement, whether it’s by continuing to work part-time for a certain period or perhaps making a bit of extra cash from a new hobby, or by using an income from renting out a property, for example, as well as using pension savings.
3. Finally, don’t leave ‘free’ money on the table
Hope says: “Understand the make-up of your workplace pension. Many employers match your pension contributions, which is free money. Check what your workplace offers and see what you can do to boost your pension pot.”
She also suggests tracking down any old pensions from previous jobs and considering whether it could be better to put everything in one place. There may be some reasons why it’s better not to move the money, so this will need careful consideration.
Locating old pension pots may only a few minutes and could help you stay much better connected to your future finances, Hope adds.
The Pension Tracing Service can help people to track down “lost” pension pots.
