Are you on track for retirement – or heading towards a shortfall?

An ‘alarming number’ of people could be facing poverty in later life, according to new research from the Living Wage Foundation.

The Foundation surveyed 2,000 workers, including 500 on low pay, and found widespread concern about what retirement will actually look like.

What the research found

Many people don’t feel confident about stopping work when they reach retirement age:

• nearly 1 in 3 (32%) expect to work beyond retirement age
• 1 in 10 think they may never be able to retire at all

Some groups are particularly affected. If you’re renting, living alone, disabled, or a woman, you’re more likely to expect to work longer.

For example, less than half (47%) of renters think they’ll retire by state pension age.

And, of those saving enough to avoid poverty in retirement: 

• just 27% are women
• only 19% are renters
• 24% live alone
• only 11% are disabled

What is a ‘living Pension’ and why does it matter?

The Living Wage Foundation is also pushing for a ‘living pension’, a voluntary standard for employers.

It aims to help you build a more secure future by encouraging:

• at least 12% total pension savings
• including a minimum 7% employer contribution, well above the legal minimum of 3%

There’s also a cash benchmark of £3,150 per year, with at least £1,840 coming from your employer.

More than 100 employers, including Aviva, SSE plc and Everton FC, have already signed up, helping over 100,000 workers.

Why this could benefit you right now

Workers say better pension contributions don’t just help in the future, they improve life today:

• 85% say it’s important employers contribute enough for a decent retirement
• 50% of ‘living pension’ savers say it boosts job satisfaction
• 63% say they’d feel better about their job if their employer contributed more
• 32% would stay longer with an employer offering this level of support

Don’t overlook pension credit, you could be missing out

If you’re already at state pension age and are finding things tight, there’s help available.

Pension credit tops up your income if you’re on a low income, and it can unlock extra support like:

• help with rent
• council tax reductions
• energy bill support
• a free TV licence if you’re over 75

But here’s the worrying part, fewer people are claiming it.

Figures from the Department for Work and Pensions show:

• 209,735 applications between Feb 2025 and Feb 2026
• that’s a 36% drop, over 117,000 fewer claims than the year before

Don’t assume you won’t qualify

You might be eligible for pension credit even if you own your home or have some savings.

Don’t miss out 

You can make a claim for pension credit on the government website.

And if you’re not sure if you qualify, give us a ring and we’ll check for you. 

We can also help you find out if you're receiving all the benefits you're entitled to, or you can use our free benefits calculator to see if you might be eligible for additional support.