Renters and single parents are almost a third less likely to be on track for a moderate retirement income, according to research from Hargreaves Lansdown.
The Hargreaves Lansdown Savings and Resilience Barometer shows just 20.2 per cent of renter households and 19.6 single parents are on track for a moderate retirement, compared to 59 per cent of homeowners and 42.6 per cent of individuals across the board.
The research found 48.8 per cent of couples with children were on course for a moderate retirement, while 27.8 per cent of self-employed households.
The PLSA standards say a single person would need a retirement income of £20,800 per year to achieve a moderate standard of living, while a couple would need £30,600.
Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown says: “Saving for retirement is a challenge for most of us but there are certain groups who are struggling more than most, namely the self-employed, single parents and renters. The self-employed pensions gap is well known – they are not covered by auto-enrolment and many prefer to invest their money in other assets such as property instead. The prospect of putting money away that can’t be accessed until the age of 55 might prove too inflexible for someone managing income volatility – getting more saving into pensions will be a tough nut to crack.
The provider says the idea of people entering retirement having paid off their mortgage is shifting as people are getting on the property ladder much later, or not getting on it at all.
The Hargreaves Lansdown Savings and Resilience Barometer was set up in partnership with Oxford Economics to measure the financial resilience of the nation every six months.
It is structured around the five pillars of financial behaviour: controlling your debts, protecting your family, saving for a rainy day, planning for later life and investing to make more of your money.
