The latest figures mark an improvement from 2017, where 14% had no pension provision.
Alarmingly, 23% had no money saved for their dotage in 2008.
Gender gap
Women are more likely to have no retirement savings – 18% will retire without a pension this year compared with 7% of men.
However, the gap is narrowing over time. In 2016, 22% of women had no retirement savings compared with 7% of men.
While in 2008, the year Prudential’s research began, a third of women (32%) were planning to retire without a pension.
The numbers
A tenth of those retiring in 2018 will either rely somewhat or solely on the state pension, which for those retiring after April will mean an income of £164.35 a week, or just over £8,500 ($12,071, €9,725) a year.
A benchmark of the income required to support an acceptable standard of living is the Joseph Rowntree Foundation’s minimum income standard of £192.27 a week for a single pensioner.
Those relying on the state pension will fall short of the minimum standard by £27.92 a week, or £1,452 a year.
Room for improvement
Stan Russell, retirement income expert at Prudential, said: “The long-term trend for the number of people retiring without a pension is down and that is good news. But there is still some distance to go and it is worrying so many people will be entirely reliant on the State Pension for their income in retirement.
“While the state pension is an important part of retirement income, it shouldn’t be the only part and those still in work should if at all possible be contributing to a pension and saving towards their retirement.
“It is never too early to start saving into a pension and even a small amount each month can make a difference and help from a professional financial adviser can be invaluable in helping plan for retirement,” Russell said.
The research highlights the significance of the State Pension to people in retirement including those with pension savings of their own. On average, people expecting to retire this year estimate that the State Pension will account for more than a third (33%) of their income in retirement.
