'Alarming' number of Brits fear they'll never be able to retire - what you can do to boost pension

Only 28% of Gen X - those born between 1965 and 1981 - believe they're on track to meet their retirement savings targets. This is significantly behind Gen Z (50%), Millennials (47%), and Baby Boomers (37%).

Nearly one in six (17%) members of Generation X say they're worried about never being able to fully retire, with 78% believing they won't have enough money saved to do so.

Sarah Lloyd, of Get Britain Pension Ready, which commissioned the research, said: "Brits across the board are feeling the pressure, with an alarming number of people worried they might never be able to retire.

"A large number of people feel that the entire retirement planning process is like 'navigating a complex minefield'. This shows not enough is being done to make sure that everyone has the resources and understanding they need to prepare effectively."

Gen X are particularly struggling because of a gap between final salary pension schemes being scrapped and the auto-enrol workplace pension scheme being introduced.

Final salary pension schemes pay out a guaranteed income for life based on how many years you worked for an organisation and the salary you earned when you left the role or retired.

Nearly half (45%) of Gen X workers questioned said final salary pensions were available at their employer when they first started working but 65% said they are no longer available to them.

Workplace pension schemes - where employers and employees both contribute - were introduced in 2012, but 30% of Gen X say this was too late to make a difference to them, having already worked an average of 15 years before it came in.

Annuity Ready, which launched the Get Britain Pension Ready campaign, found more than half (58%) of those questioned felt like they were navigating a complex minefield when it came to pensions and retirement due to lack of knowledge. This is up marginally from 57% last year when the annual survey first took place.

Rotimi Merriman-Johnson, independent expert for Get Britain Pension Ready said: "It's important to stress it's never too late to take action.

"By accessing the right tools, individuals can gain clarity about their current position and start making informed decisions to bridge the gap. The key is both education and proactive planning, steps that can empower Brits to take control of their financial futures and move closer to the retirement they deserve."

What you can do to get retirement ready

1. Get the facts

Get Britain Pension Ready has created a Retirement Readiness Quiz, to give Britons a sense of their current status when it comes to retirement and pensions.

Quiz takers are then directed towards information to fill in gaps in their knowledge and resources based on their score.

2. Check State Pension forecast

You can check your State Pension forecast on the Government website which will tell you when you're able to claim it, how much you're eligible for, and how to increase your entitlement if you're not listed as getting the full amount.

If you're not entitled to the full amount this may be because you haven't made enough National Insurance contributions (you need to have 35 qualifying years and this can be a mix of contributions made through working or years treated as having been paid if you were unable to work for example because you were bringing up children.)

In this case, you're able to make voluntary National Insurance contributions to ensure you receive the full State Pension.

3. Track down any lost pensions.

As NimbleFins previously reported, more than £50bn in pensions are at risk of being lost.

Here we look at how to track down old pensions.

4. Consider increasing your workplace pension contributions.

The workplace pension scheme takes a percentage of your salary and adds it to a pension, with your employer also contributing.

If you're aged between 22 and State Pension age, earn at least £10,000 a year and haven't opted out, your employer must contribute a minimum of 3% of your salary. Your total combined contribution must be 8%, so in most cases employees must contribute a minimum of 5%. (If your employer contributes 4%, your minimum is 4% to make the combined 8%. And if your employer contributes 5% your minimum is 3% etc.)

However, these numbers can be increased.

As an employee you can add as much as you like to your pension. And some companies also match your increased contributions up to a certain percentage. For example, a company may contribute up to 8% of your salary if you also contribute 8%.

What's more, any pension contributions you make are taken from your salary before it's been taxed, so you are getting tax relief on what you set aside.

One thing to beware of is you can only contribute up to £60,000, or 100% of your earnings, tax free each year. So if you earned £30,000 and put all of it towards your pension, anything extra you contribute will be taxed. Equally, if you earned £150,000 and you put £70,000 into your pension, £10,000 would be taxed.

One workaround here is by using unused allowances from up to the three previous tax years.

5. Delay taking your workplace pension.

This doesn't necessarily mean you need to continue working past retirement age, it just means you won't have your workplace pension as early as you could have.

This could benefit you financially as the pension has more time to grow.

If you do continue to work, delaying could help you pay less tax on your pension as it's classed as an income. Plus you'll also be topping up your fund with contributions if you continue to work.

6. Delay taking the State Pension.

As NimbleFins previously reported, the State Pension increases by 1% for every nine weeks you defer claiming it.

If you delayed taking the pension for a whole year, the Department for Work and Pensions would top up your pension payments by nearly 5.8%. And that is for every year afterwards.

At the current full state pension of £11,502 a year, that would give you a £666 boost every year for the rest of your life.

The amount would be even higher as the state pension rates go up over time. We've looked at the pros and cons of delaying State Pension here.

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