Study warns one-third of UK workers under 60 may retire below basic living standard

A new Fabian Society study, supported by Age UK, the Trades Union Congress and Dartmouth Street Trust, finds that 31% of UK adults aged 22 to 60 could retire earning less than the £13,900 per-year minimum living standard defined by Pensions UK. Generation Z appears most vulnerable, with 35% likely to fall below the benchmark, a result the think-tank attributes to barriers to employment, stagnant wages, student loan burdens and the move away from generous defined-benefit schemes.

The research combined a Survation survey of 4,000 respondents, focus groups and financial modelling. Nearly half of under-45s expect to be worse off than current retirees, and 55% think the government should replace the pension “triple lock”. Opinions on the lock differ sharply by age group, while most respondents oppose accelerating the planned rise in state pension age. Support is strong for expanding automatic enrolment and reducing higher-rate tax relief on pension contributions for top earners.