New research from Scottish Widows estimates 12.2 million UK adults are currently on track to fall below a minimum standard of living in retirement. The figure is equivalent to 31 per cent of adults and means nearly one in three people risk not having enough retirement income to cover their basic needs.
The findings come from the financial firm's 2026 Retirement Report and have been highlighted ahead of Pension Awareness Day on Tuesday, September 15.
Scottish Widows said people do not necessarily need to make dramatic changes to improve their retirement prospects, but regularly checking pensions and taking action where possible could make a significant difference over the longer term.
Improvement compared with 2025
The latest figures show an improvement compared with 2025, when Scottish Widows estimated 39 per cent of UK adults - around 15.3 million people - were heading for a retirement income below the minimum standard.
However, the firm cautioned much of the improvement reflects changes to the estimated cost of achieving a minimum retirement lifestyle, including lower energy costs, rather than a substantial improvement in people's underlying retirement savings.
Scottish Widows also found more than a third of people who are self-employed or work part-time risk falling short of the minimum retirement standard, compared with fewer than one in five full-time employees.
Five pension checks
Scottish Widows says starting pension saving earlier gives contributions more time to potentially benefit from investment growth and compounding. People already paying into a pension could check the amount being contributed and consider reviewing it when their circumstances change.
A pay rise, bonus or reduction in another regular expense could provide an opportunity to increase contributions if affordable. Employees should also check their workplace pension arrangements to establish whether their employer offers additional contribution matching above its standard level.
Workplace pension schemes generally involve contributions from both the employee and employer. However, some employers will increase their contribution if the employee agrees to pay more themselves. Scottish Widows recommends checking the rules of your particular workplace scheme to find out whether additional employer matching is available and whether you are taking full advantage of it.
People who have worked for several employers during their career may have accumulated multiple workplace pension pots. Scottish Widows recommends using your employment history or CV to identify previous employers and checking whether you still have pension savings connected with them.
The UK Government's free Pension Tracing Service can help people find the contact details for workplace and personal pension schemes. You need the name of an employer or pension provider to use the service. However, the Pension Tracing Service does not tell you whether you actually have a pension with the scheme or how much it is worth. Instead, it provides contact information so you can approach the pension provider or administrator.
State Pension forecast and retirement planning
People can also check how much State Pension they are currently on track to receive. The Government's online State Pension forecast service shows how much someone could receive, when they can receive it and whether they may be able to increase the amount. The forecast can also be accessed through the HMRC app.
The amount of State Pension someone eventually receives depends on their National Insurance record and individual circumstances. People below State Pension age may also be able to check whether gaps in their National Insurance record can be filled with voluntary contributions and whether doing so would increase their forecast.
Finally, Scottish Widows recommends thinking about the lifestyle you would like to have after finishing work and comparing this with the retirement income you are currently building.
Pensions UK's Retirement Living Standards provide examples of what different standards of living in retirement could cost. Retirement calculators can also help people explore how factors including pension contributions, investment growth and the age at which they retire could affect their eventual retirement income.
Scottish Widows said its latest forecast shows the UK population remains sharply divided in terms of retirement prospects. Around 31 per cent are projected to have less than the minimum retirement lifestyle, while approximately 30 per cent are heading towards a minimum standard and another 30 per cent are on course for a comfortable retirement.
Robert Cochran, Pensions Expert at Scottish Widows, said: “Retirement saving works much the same way. You don't need to make dramatic changes, but regularly checking in on your pension and taking small actions can make a surprisingly big difference over time.”
Mr Cochran said people should think of their retirement savings as something requiring regular attention rather than checking them only occasionally. He said: “The growers who produce extraordinary results give their plants regular attention throughout the season.”
Pension Awareness Day takes place on Tuesday, September 15.
