People in London, Scotland and the East are most at risk of poverty in retirement

Londoners and Scots are among those most at risk of falling into trouble in old age, a breakdown of current pension savings in the UK shows.

Nearly two in five people in those parts of the country, and in the east and north-east of England, could struggle to keep up with household bills in retirement.

People in Northern Ireland and the West Midlands are best prepared for old age, although no region has an overwhelming number of people in a financially advantaged position, according to Scottish Widows research.

The company used its previous research into potential retirement outcomes for people aged 22 to 65 to look at the regions where people are doing the best and the worst.

It surveyed more than 5,000 nationally representative adults and around 1,350 people from ethnic minorities, projecting their likely retirement income against benchmarks in an influential sector survey.

The Pensions and Lifetime Savings Association’s standard of living measure is based on different packages of goods and services, such as food and drink, transport, holidays, clothing and social outings.

It showed that an individual needs £12,800 a year for a basic lifestyle, £23,300 to meet moderate needs, and £37,300 for a comfortable old age.

Scroll down to find out what these income levels get you and what couples need. The PLSA excludes housing costs, although Scottish Widows has included this in its own research.

Scottish Widows found that almost 39 percent of people in London, Scotland and the East and North East of England were on their way to less than the minimum income in old age. People in this group are likely to struggle to afford basic necessities such as food and heating.

The company says that, perhaps unexpectedly, the data shows no clear north-south divide in the extent to which people are preparing for retirement.

“However, there are possible explanations offered by the National Retirement Forecast,” the report says.

‘Not only are retirees in London, for example, more likely than people elsewhere to rent their home (35 percent versus 30 percent), but they are also likely to see rental payments eat up a UK 131 percent of their retirement income. .

‘Similarly, rents will make up 98 per cent of the retirement income of those in the east of England.

‘The poor pension prospects in the North East and Scotland, meanwhile, are likely to be a product of employment patterns.

‘These regions have historically had lower average incomes and employment rates than the rest of Britain, threatening the ability of people in these regions to save enough for retirement.’

Pete Glancy, head of policy, added: ‘The uncomfortable truth is that people in the UK are failing to save enough for their retirement and some are carrying on without realizing that they could take some simple steps to make a big difference to their financial future.

‘Looking so far ahead makes it difficult for many people to set priorities. Looking at your pension realistically is not as difficult as it seems. It’s as simple as checking how much you have in your pot, whether it’s enough for the retirement you want and what you can do next to put yourself in the best position when you retire.

‘We recommend that people save at least 15 percent of their salary if they can afford it for their retirement, including employer contributions and tax relief (see below for the minimum for auto-enrolment, which totals 8 percent of salary).

“Even though this may feel beyond your means, taking steps to figure out what you have, if it’s enough, and what options you have is a big step in the right direction.”

> How do you arrange your pension if you are afraid it will fall short? Read it below

Who pays what: Automatic breakdown of minimum pension contributions for taxpayers at this time. Contributions are based on a range of your earnings between £6,240 and £50,270, but some employers are more generous.

Retirement Income Needs for Singles (Source PLSA)

Retirement Income Needs for Couples (Source PLSA)

How do you arrange your pension if you are afraid it will fall short?

1) If you are concerned about whether you have enough saved, examine your existing pensions. Broadly speaking, you should ask schedules the following questions.

– The current fund value.

– The current transfer value – because there may be a penalty associated with a move.

– Whether the pension falls under a final salary or defined contribution scheme. Defined contribution Pensions take contributions from both the employer and employee and invest them to provide a pot of money upon retirement.

Unless you work in the public sector, they have now largely replaced the more generous gold plating defined benefit – average career or final salary – pensions that provide a guaranteed income after retirement until your death.

Defined contribution pensions are more meager and savers bear the investment risk, rather than employers.

– Whether there are guarantees – for example a guaranteed annuity – and whether you would lose these if you were to move the fund.

– The pension projection at retirement age. You can use a pension calculator to see if you have enough. These are widely available online.

2) You must add the forecast figures to the amount you expect in state pension, which is currently £203.85 per week or around £10,600 per year if you qualify for the full new rate. Request an AOW forecast here.

3) If you’re tempted to merge your old pensions, read our guide first to make sure you don’t face a penalty.

4) If you’ve lost track of old pots, you can use the The government’s free pension tracking service is here.

Be careful when searching online for the Pension Search Service as many companies with similar names will appear in the results.

These also offer to look for your pension, but try to charge or flog you for other services, and this can be fraudulent.