"The death of retirement" - Royal London releases local, regional and national results

Press Release

02 March 2016

New analysis published today (Weds 2^nd March) by Royal London shows how long workers in each part of the United Kingdom would have to work to achieve the same quality of pension as their parents’ generation. There are big variations across the country with workers in higher wage areas having to work up to seven years longer than those in low wage areas to make sure that they can maintain their standard of living when they retire.

Someone on the national average wage who starts saving for a pension at age 22 and pays in only at the statutory minimum level required by the Government (8% of a band of earnings) would need to work to 77 to get the sort of ‘Gold Standard’ pension enjoyed by many of their parents’ generation. This is defined as a total pension (including state pension) of two thirds of pre-retirement income, with protection against inflation and something for a surviving spouse. To get a ‘silver standard’ pension of around half of pre-retirement income, the same worker would need to work to 71.

But how long you have to work depends on how much you are earning. With the state pension being the same level everywhere in the country (around £8,000 per year from April 2016), workers in high wage areas will have to build up much more private pension to maintain their higher living standard in retirement than those in lower wage areas.

The following table shows how long you would have to work to get a ‘Gold Standard’ or ‘Silver Standard’ pension in selected local authority areas based on the typical full-time wage in those areas.

Table: Age at which you can retire in selected areas to achieve target pension income¹

Area (with median wage)	‘Gold Standard’	‘Silver Standard’
Copeland (£40,040)	80	75
Tonbridge and Malling (£34,996)	79	74
UK Average (£27,645)	77	71
Sedgemoor (£25,000)	76	70
Boston (£20,376)	73	67

Data for each local authority and for each UK nation and region can be downloaded at www.royallondon.com/policy-papers and is included in the appendix of this release.

Commenting on the results, Steve Webb, Director of Policy at Royal London said:

“It is great news that millions more workers are being enrolled into workplace pensions, but the amounts going in are simply not enough to give people the kind of retirement they would want for themselves, and certainly not the sort of pensions that many of those retiring now are enjoying. Even in lower wage areas people face working into their early seventies to get a comfortable retirement. In higher wage areas, the state pension makes a much smaller contribution so workers in those areas face working well into their seventies.

“The best antidote to having to work well beyond normal retirement ages is to start saving early and to increase pension saving. A good tip is to review your pension saving when you get a pay rise as you are less likely to miss money you have never had. Increasing your contributions when your pay goes up is the best way to avoid having to work until you drop.”

- ENDS -

For further information please contact:

Steve Webb

Director of Policy

steve.webb@royallondon.com

020 7015 2556

07875 494 184

Notes to editors:

Wage figures are from the Office for National Statistics estimates as at April 2015 and are based on the median full-time worker who has been in post for one year or more. Data is based on place of work rather than place of residence. Wage information is based on sample data so is only an estimate.

About Royal London:

Royal London is the largest mutual life, pensions and investment company in the UK, with Group funds under management of £84.5 billion. Group businesses provide around 9.1 million policies and employ 2,988 people. (Figures quoted are as at 31 December 2015).

Follow @RoyalLondonNews

Appendix

Table: Age at which you can retire in each nation, region and local authority areas to achieve target pension income

- Wage figures are annual wages for full-time workers working in the specified area who have - been in post for one year or more.

- Wage data is at April 2015 and are sample estimates from the Office for National Statistics

- 'Gold Standard' retirement income is a combined state and private pension income of two thirds of pre-retirement gross wage, with inflation protection and a 50% pension for a surviving spouse.

- 'Silver Standard' retirement income is a combined state and private pension income of half of pre-retirement gross wage, with inflation protection and a 50% pension for a surviving spouse.

- Further details of the method used can be found in the main report: "The Death of Retirement" available from www.royallondon.com/policy-papers

- Local authorities with an 'x' are those where robust ONS wage data is not available owing to small sample sizes

Description	Median annual wage	‘Gold Standard’	‘Silver Standard’
United Kingdom	£27,645	77	71
Great Britain	£27,732	77	71
England and Wales	£27,732	77	71
England	£27,869	77	71
North East	£25,218	76	70
Darlington UA	£25,428	76	70
Hartlepool UA	£26,189	76	71
Middlesbrough UA	£24,548	76	70
Redcar and Cleveland UA	£25,035	76	70
Stockton-on-Tees UA	£26,620	76	71
County Durham UA	£24,741	76	70
Northumberland UA	£25,122	76	70
Tyne and Wear MC	£25,294	76	70
Gateshead	£24,986	76	70
Newcastle upon Tyne	£26,431	76	71
North Tyneside	£25,680	76	71
South Tyneside	£24,469	75	70
Sunderland	£24,513	75	70
North West	£25,721	76	71
Blackburn with Darwen UA	£21,528	74	68
Blackpool UA	£21,302	74	68
Halton UA	£24,995	76	70
Warrington UA	£28,241	77	72
Cheshire East UA	£27,944	77	71
Cheshire West and Chester UA	£28,659	77	72
Cumbria	£26,169	76	71
Allerdale	£26,325	76	71
Barrow-in-Furness	£25,905	76	71
Carlisle	£23,012	75	69
Copeland	£40,040	80	75
Eden	£23,699	75	70
South Lakeland	£25,717	76	71
Greater Manchester MC	£25,512	76	70
Bolton	£23,656	75	70
Bury	£27,421	77	71
Manchester	£24,968	76	70
Oldham	£22,810	75	69
Rochdale	£23,799	75	70
Salford	£24,499	75	70
Stockport	£27,519	77	71
Tameside	£23,485	75	69
Trafford	£30,946	78	73
Wigan	£26,206	76	71
Lancashire	£25,257	76	70
Burnley	£22,474	74	69
Chorley	£25,658	76	70
Fylde	£26,013	76	71
Hyndburn	£22,272	74	69
Lancaster	£26,387	76	71
Pendle	£24,849	76	70
Preston	£23,141	75	69
Ribble Valley	£27,388	77	71
Rossendale	£23,843	75	70
South Ribble	£25,658	76	70
West Lancashire	£26,123	76	71
Wyre	£26,940	77	71
Merseyside MC	£25,951	76	71
Knowsley	£23,995	75	70
Liverpool	£25,846	76	71
St. Helens	£26,201	76	71
Sefton	£24,858	76	70
Wirral	£28,003	77	71
Yorkshire and The Humber	£25,105	76	70
East Riding of Yorkshire UA	£26,099	76	71
Kingston upon Hull UA	£22,675	75	69
North East Lincolnshire UA	£23,711	75	70
North Lincolnshire UA	£28,435	77	72
York UA	£25,674	76	71
North Yorkshire	£26,285	76	71
Craven	£23,618	75	70
Hambleton	x
Harrogate	£27,033	77	71
Richmondshire	£26,635	76	71
Ryedale	£22,665	75	69
Scarborough	£26,414	76	71
Selby	x
South Yorkshire MC	£25,074	76	70
Barnsley	£25,501	76	70
Doncaster	£23,944	75	70
Rotherham	£25,122	76	70
Sheffield	£25,340	76	70
West Yorkshire MC	£25,055	76	70
Bradford	£23,464	75	69
Calderdale	£25,405	76	70
Kirklees	£25,038	76	70
Leeds	£26,372	76	71
Wakefield	£23,558	75	70
East Midlands	£25,606	76	70
Derby UA	£28,275	77	72
Leicester UA	£21,402	74	68
Nottingham UA	£22,567	74	69
Rutland UA	£28,693	77	72
Derbyshire	£25,962	76	71
Amber Valley	£26,486	76	71
Bolsover	£22,422	74	69
Chesterfield	£25,967	76	71
Derbyshire Dales	£26,662	76	71
Erewash	£26,228	76	71
High Peak	£25,531	76	70
North East Derbyshire	x
South Derbyshire	£27,242	77	71
Leicestershire	£26,626	76	71
Blaby	£27,457	77	71
Charnwood	£27,442	77	71
Harborough	x
Hinckley and Bosworth	£25,356	76	70
Melton	x
North West Leicestershire	£25,601	76	70
Oadby and Wigston	£21,168	74	68
Lincolnshire	£24,306	75	70
Boston	£20,376	73	67
East Lindsey	x
Lincoln	£23,075	75	69
North Kesteven	£26,544	76	71
ollandSouth H	£23,779	75	70
South Kesteven	£24,849	76	70
West Lindsey	£25,288	76	70
Northamptonshire	£26,826	77	71
Corby	£24,048	75	70
Daventry	£28,231	77	72
East Northamptonshire	£29,031	77	72
Kettering	£25,927	76	71
Northampton	£25,491	76	70
South Northamptonshire	£30,951	78	73
Wellingborough	£25,136	76	70
Nottinghamshire	£26,092	76	71
Ashfield	£23,893	75	70
Bassetlaw	£25,211	76	70
Broxtowe	£29,158	77	72
Gedling	£26,698	77	71
Mansfield	£23,004	75	69
Newark and Sherwood	x
Rushcliffe	£32,002	78	73
West Midlands	£25,650	76	70
Herefordshire UA	£22,602	74	69
Stoke-on-Trent UA	£22,237	74	69
Telford and Wrekin UA	£24,983	76	70
Shropshire UA	£25,681	76	71
Staffordshire	£26,140	76	71
Cannock Chase	£26,629	76	71
East Staffordshire	£25,012	76	70
Lichfield	x
Newcastle-under-Lyme	£24,285	75	70
South Staffordshire	£27,551	77	71
Stafford	£27,898	77	71
Staffordshire Moorlands	£27,615	77	71
Tamworth	£23,667	75	70
Warwickshire	£28,528	77	72
North Warwickshire	£26,380	76	71
Nuneaton and Bedworth	£25,311	76	70
Rugby	£30,649	78	72
Stratford-on-Avon	£28,675	77	72
Warwick	£30,348	78	72
West Midlands MC	£25,323	76	70
Birmingham	£25,071	76	70
Coventry	£26,902	77	71
Dudley	£25,825	76	71
Sandwell	£23,241	75	69
Solihull	£32,020	78	73
Walsall	£24,326	75	70
Wolverhampton	£23,042	75	69
Worcestershire	£26,424	76	71
Bromsgrove	x
Malvern Hills	£26,067	76	71
Redditch	£21,368	74	68
Worcester	£27,235	77	71
Wychavon	£27,236	77	71
Wyre Forest	£25,618	76	70
East of England	£29,282	78	72
Luton UA	£26,853	77	71
Peterborough UA	x
Southend-on-Sea UA	£28,444	77	72
Thurrock UA	£30,147	78	72
Bedford UA	£27,874	77	71
Central Bedfordshire UA	£30,550	78	72
Cambridgeshire	£29,536	78	72
Cambridge	£31,778	78	73
East Cambridgeshire	£29,393	78	72
Fenland	£24,726	76	70
Huntingdonshire	£29,069	77	72
South Cambridgeshire	£31,609	78	73
Essex	£30,390	78	72
Basildon	£29,424	78	72
Braintree	x
Brentwood	£39,462	80	75
Castle Point	x
Chelmsford	£31,816	78	73
Colchester	£28,686	77	72
Epping Forest	£34,088	79	74
Harlow	x
Maldon	£33,363	79	73
Rochford	x
Tendring	x
Uttlesford	£32,186	79	73
Hertfordshire	£32,579	79	73
Broxbourne	£32,000	78	73
Dacorum	£31,837	78	73
East Hertfordshire	£33,022	79	73
Hertsmere	£28,957	77	72
North Hertfordshire	£34,518	79	74
St Albans	£37,688	80	75
Stevenage	£28,547	77	72
Three Rivers	£32,418	79	73
Watford	£32,345	79	73
Welwyn Hatfield	£30,089	78	72
Norfolk	£25,147	76	70
Breckland	£23,553	75	70
Broadland	£26,440	76	71
Great Yarmouth	£23,746	75	70
King's Lynn and West Norfolk	£25,194	76	70
North Norfolk	£24,405	75	70
Norwich	£23,854	75	70
South Norfolk	£29,150	77	72
Suffolk	£26,593	76	71
Babergh	£27,635	77	71
Forest Heath	x
Ipswich	£26,090	76	71
Mid Suffolk	£28,923	77	72
St Edmundsbury	£26,551	76	71
Suffolk Coastal	£30,731	78	72
Waveney	£24,328	75	70
London	£33,203	79	73
Inner London	£34,658	79	74
Camden	£39,610	80	75
City of London	x
Hackney	£32,199	79	73
Hammersmith and Fulham	£38,029	80	75
Haringey	£30,931	78	73
Islington	£35,476	79	74
Kensington and Chelsea	x
Lambeth	£33,341	79	73
Lewisham	£31,783	78	73
Newham	£27,174	77	71
Southwark	£34,537	79	74
Tower Hamlets	£34,849	79	74
Wandsworth	£39,562	80	75
Westminster	£42,798	81	76
Outer London	£32,403	79	73
Barking and Dagenham	£28,428	77	72
Barnet	£33,084	79	73
Bexley	£32,040	78	73
Brent	£29,777	78	72
Bromley	£36,498	80	74
Croydon	£32,887	79	73
Ealing	£28,978	77	72
Enfield	£31,094	78	73
Greenwich	£31,757	78	73
Harrow	£32,529	79	73
Havering	£32,274	79	73
Hillingdon	£32,989	79	73
Hounslow	x
Kingston upon Thames	£36,767	80	74
Merton	£33,122	79	73
Redbridge	£35,665	79	74
Richmond upon Thames	£39,563	80	75
Sutton	£31,387	78	73
Waltham Forest	£29,532	78	72
South East	£30,074	78	72
Bracknell Forest UA	£31,213	78	73
Brighton and Hove UA	£28,309	77	72
Isle of Wight UA	£25,159	76	70
Medway UA	£29,191	77	72
Milton Keynes UA	£27,821	77	71
Portsmouth UA	£26,461	76	71
Reading UA	£29,351	78	72
Slough UA	£28,376	77	72
Southampton UA	£25,918	76	71
West Berkshire UA	£32,000	78	73
Windsor and Maidenhead UA	£37,181	80	74
Wokingham UA	£37,836	80	75
Buckinghamshire	£32,460	79	73
Aylesbury Vale	£29,742	78	72
Chiltern	£38,766	80	75
South Bucks	£34,305	79	74
Wycombe	£32,396	79	73
East Sussex	£27,441	77	71
Eastbourne	£26,630	76	71
Hastings	£24,381	75	70
Lewes	£28,854	77	72
Rother	£25,927	76	71
Wealden	£30,111	78	72
Hampshire	£30,390	78	72
Basingstoke and Deane	£31,323	78	73
East Hampshire	£29,773	78	72
Eastleigh	£29,761	78	72
Fareham	£30,102	78	72
Gosport	£27,430	77	71
Hart	£36,240	80	74
Havant	£27,462	77	71
New Forest	£28,106	77	72
Rushmoor	£28,110	77	72
Test Valley	£31,426	78	73
Winchester	x
Kent	£29,759	78	72
Ashford	£27,948	77	71
Canterbury	£32,349	79	73
Dartford	£29,359	78	72
Dover	x
Gravesham	£28,702	77	72
Maidstone	£29,829	78	72
Sevenoaks	£30,731	78	72
Shepway	£28,231	77	72
Swale	£29,652	78	72
Thanet	£22,972	75	69
Tonbridge and Malling	£34,996	79	74
Tunbridge Wells	£35,331	79	74
Oxfordshire	£30,942	78	73
Cherwell	£29,173	77	72
Oxford	£30,689	78	72
South Oxfordshire	£31,818	78	73
Vale of White Horse	£32,123	78	73
West Oxfordshire	£31,808	78	73
Surrey	£34,455	79	74
Elmbridge	£38,582	80	75
Epsom and Ewell	£34,970	79	74
Guildford	£33,854	79	73
Mole Valley	£31,015	78	73
Reigate and Banstead	£35,175	79	74
Runnymede	£31,740	78	73
Spelthorne	£34,358	79	74
Surrey Heath	£34,278	79	74
Tandridge	£31,617	78	73
Waverley	£37,553	80	75
Woking	£31,393	78	73
West Sussex	£28,545	77	72
Adur	£25,397	76	70
Arun	£24,989	76	70
Chichester	£27,852	77	71
Crawley	£28,374	77	72
Horsham	x
Mid Sussex	£31,716	78	73
Worthing	x
South West	£26,518	76	71
Bath and North East Somerset UA	£28,131	77	72
Bournemouth UA	£26,594	76	71
Bristol, City of UA	£27,378	77	71
North Somerset UA	£29,497	78	72
Plymouth UA	£25,063	76	70
Poole UA	£27,456	77	71
South Gloucestershire UA	£29,074	77	72
Swindon UA	£28,126	77	72
Torbay UA	£22,371	74	69
Cornwall UA	£23,346	75	69
Isles of Scilly UA	x
Devon	£24,742	76	70
East Devon	£25,503	76	70
Exeter	£24,477	75	70
Mid Devon	£24,627	76	70
North Devon	£22,212	74	69
South Hams	£27,511	77	71
Teignbridge	£24,615	76	70
Torridge	£23,381	75	69
West Devon	£25,086	76	70
Dorset	£26,998	77	71
Christchurch	£29,705	78	72
East Dorset	£28,866	77	72
North Dorset	£24,174	75	70
Purbeck	£24,408	75	70
West Dorset	£26,997	77	71
Weymouth and Portland	£25,293	76	70
Gloucestershire	£27,437	77	71
Cheltenham	£30,162	78	72
Cotswold	x
Forest of Dean	£26,669	76	71
Gloucester	£25,334	76	70
Stroud	£27,374	77	71
Tewkesbury	£30,688	78	72
Somerset	£25,389	76	70
Mendip	£25,817	76	71
Sedgemoor	£25,000	76	70
South Somerset	£23,738	75	70
Taunton Deane	£25,633	76	70
West Somerset	£30,465	78	72
Wiltshire UA	£27,165	77	71
Wales / Cymru	£25,178	76	70
Isle of Anglesey / Ynys Môn	£23,624	75	70
Gwynedd / Gwynedd	x
Conwy / Conwy	£26,960	77	71
Denbighshire / Sir Ddinbych	£22,156	74	69
Flintshire / Sir y Fflint	£27,728	77	71
Wrexham / Wrecsam	£25,871	76	71
Powys / Powys	£24,868	76	70
Ceredigion / Ceredigion	£21,965	74	69
Pembrokeshire / Sir Benfro	£23,108	75	69
Carmarthenshire / Sir Gaerfyrddin	£24,205	75	70
Swansea / Abertawe	£24,831	76	70
Neath Port Talbot / Castell-nedd Port Talbot	£25,831	76	71
Bridgend / Pen-y-bont ar Ogwr	£26,177	76	71
Vale of Glamorgan / Bro Morgannwg	£26,830	77	71
Cardiff / Caerdydd	£26,303	76	71
Rhondda Cynon Taf / Rhondda Cynon Taf	£24,873	76	70
Merthyr Tydfil / Merthyr Tudful	£22,217	74	69
Caerphilly / Caerffili	£24,539	76	70
Blaenau Gwent / Blaenau Gwent	£23,008	75	69
Torfaen / Torfaen	£25,043	76	70
Monmouthshire / Sir Fynwy	£30,644	78	72
Newport / Casnewydd	£25,377	76	70
Scotland	£27,732	77	71
Aberdeen City	£30,204	78	72
Aberdeenshire	£30,392	78	72
Angus	£26,412	76	71
Argyll and Bute	£26,425	76	71
Clackmannanshire	£26,556	76	71
Dumfries and Galloway	£23,876	75	70
Dundee City	£24,090	75	70
East Ayrshire	£25,579	76	70
East Dunbartonshire	£32,016	78	73
East Lothian	£29,233	78	72
East Renfrewshire	£34,772	79	74
City of Edinburgh	£30,033	78	72
Eilean Siar	£24,357	75	70
Falkirk	£27,001	77	71
Fife	£27,138	77	71
Glasgow City	£27,417	77	71
Highland	£27,199	77	71
Inverclyde	£27,071	77	71
Midlothian	£26,885	77	71
Moray	£26,064	76	71
North Ayrshire	£25,585	76	70
North Lanarkshire	£26,293	76	71
Orkney Islands	£25,750	76	71
Perth and Kinross	£26,634	76	71
Renfrewshire	£28,032	77	71
Scottish Borders	£25,416	76	70
Shetland Islands	£29,413	78	72
South Ayrshire	£29,591	78	72
South Lanarkshire	£28,192	77	72
Stirling	£26,394	76	71
West Dunbartonshire	£26,966	77	71
West Lothian	£26,340	76	71
Northern Ireland	£25,842	76	71