Business & Technology
Pension poverty warning for 12.2 million as rules change
New research from Scottish Widows found that 12.2 million people remain at risk of not having enough money to cover basic needs in retirement.
Pension experts are now urging workers to carry out a “pension health check” and rethink how much they are saving before it is too late.
The firm’s latest Retirement Report found:
- 31% of UK adults are still at risk of pension poverty
- Around 12.2 million people may not cover basic retirement costs
- Increasing pension contributions could dramatically improve outcomes
Although the figures are slightly better than last year – when 39% were considered at risk – experts warned many households are still dangerously underprepared.
The pension ‘magic number’ experts say matters most
Susan Hope said one of the biggest mistakes people make is not saving enough early enough.
She said: “As a rule of thumb, we suggest saving 15% of your salary to help reach a comfortable retirement.”
That figure includes:
- Personal pension contributions
- Employer contributions
- Tax relief from the Government
Hope said even increasing contributions by an extra 1% or 2% could make a significant difference over time.
Hope said retirement planning often fails because people struggle to visualise what they actually want later life to look like.
She said: “Before diving into spreadsheets and sums, picture your ideal retirement.
“For some, it might be enjoying more time at home, while for others it’s European city breaks or long-haul holidays.”
Experts say creating a realistic picture of retirement can help people feel more motivated to save consistently.
Millions urged to do a ‘pension health check’
Scottish Widows is encouraging people to carry out regular pension “health checks” to understand whether they are on track.
The report found:
- A third of people may not have enough to meet basic retirement living standards
Hope said reviewing pensions regularly can help people:
- Spot savings gaps early
- Adjust retirement plans
- Increase contributions gradually
- Avoid major shocks later in life
She added that even people in their 40s, 50s and 60s can still significantly improve retirement outcomes.
Why tax relief gives pensions a major advantage
Experts also highlighted the tax benefits of pensions compared with other savings products.
When paying into a pension:
- Most workers receive tax relief from the Government
- Investment growth is protected from Capital Gains Tax
Hope said this means pensions can sometimes be more tax-efficient than ISAs for retirement saving.
She added: “The more time your money is invested, the more time it has to grow.”
The emergency savings warning many overlook
Alongside pensions, experts say households should also focus on building separate “side savings” for emergencies.
Hope warned unexpected costs can derail long-term financial plans if people do not have accessible cash savings.
She said: “An emergency fund is something we should all have.
“It helps with those unexpected costs without disrupting wider financial wellbeing.”
Pension poverty may improve – but experts warn risks remain
The Scottish Widows report found retirement prospects improved partly because:
- More people expect to own homes in retirement
- Some households increased non-pension savings
- Energy costs eased temporarily
But experts warned rising bills and global economic uncertainty could quickly reverse that progress.
Pete Glancy said: “The factors we can control, like how much we save, can easily be thrown off course by shifting external factors like increases to energy and general cost of living.”
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Huge pension changes could be coming
The Government’s new Pensions Commission is now reviewing how to improve retirement outcomes across Britain.
Scottish Widows says one of the most important changes would be increasing auto-enrolment pension contributions from:
The company estimates this could:
- Add around £40,000 to retirement pots on average
- Increase savings for some younger workers by more than £114,000
Experts say younger workers would benefit most because their money would have longer to grow.
Jayden, 13 launched Jay’s Bakes from his home in Taunton Road in Bicester on Saturday, June 20.
His late nan, a keen baker herself, was the inspiration behind his passion, as well as time spent helping his uncle with his catering business.
Over the last 18 months he has honed his skills by preparing sweat treats every day after school.
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Determined to turn his hobby into something more, Jayden spent two and a half months researching requirements, gaining his Level 2 food hygiene certificate and officially registering his business, mostly without adult intervention.
After four days of preparation, the business officially launched.
Customers were treated to a wide selection of homemade goods, including M&M cookies, Kinder brownies, Biscoff cookies, Victoria sponge trays, lemon drizzle cups and viral ‘dot cakes’.
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His Kinder brownies proved particularly popular, and by the end of the day he had sold out of everything, taking £210.
Despite feeling “excited and a bit nervous” beforehand, Jayden said the opening was a success, with a strong turnout and positive feedback shared on social media.
His favourite moment came when he officially opened the shed by cutting the ribbon.
Supported by his mum, stepdad, grandparents and uncle, Jayden first began selling from a table in May before building and painting his now-signature blue cake shed.
He now plans to continue baking and selling regularly, bringing his creations to the local community.
Lidl has been given planning permission to build its ninth supermarket in Oxfordshire, despite concerns over flooding.
Aldi opened in Didcot in 2015 and has a supermarket at the Jubilee Way roundabout but shoppers in the town have had to wait over a decade for Lidl to follow.
READ MORE: Popular hi-fi shop has closed down
South Oxfordshire District Council has now backed plans by the German retailer for a new supermarket in Abingdon Road.
Former Didcot mayor Mocky Khan said: “This give the residents of Didcot more choice, especially when you consider the cost of living environment we have at the moment.
“The town is growing with more new homes being built, and with more growth it’s good to have a wide variety of supermarkets to fit all budgets,”
The plans for the new supermarket were first submitted in 2024.
Didcot Town Council previously objected to the scheme, on the grounds of a lack of flood risk mitigation measures, along with the county council who said there was “insufficient information”.
The town council noted there are “several flooding incidents in the area, especially when the Marsh Bridge water pumps fail”.
But in a report by planning officers granting permission to the supermarket, those issues have now been addressed by Lidl.
The officers said the proposals “largely accord” with the policies around planning, and more can be done to “break up” the car park with greenery.
Planning officers chose to let Lidl build the new supermarket subject to conditions.
They said in a report: “Balanced against this policy conflict is the fact that this is a previously developed site, which is currently in a dilapidated state.
“The proposals represent a significant improvement on the current underutilisation of the site and on its appearance.
“The National Planning Policy Framework and Local Plan set out significant support for the reuse of previously developed land.
“As stated in the applicant’s planning statement, there have been previous enquiries as to the redevelopment of the site that have not come to fruition.
“Given this, finding a viable use for the site is a clear benefit which I consider to be of substantial benefit.”
Thirty-four residents had objected to Lidl’s plans, highlighting concerns over extra traffic, there being no need for another supermarket in the town and there being more appropriate locations to build in their view.
Didcot already has an Aldi store just off Broadway and a Sainsbury’s, M&S Foodhall and Asda.
The nearest Lidl to the proposed site are in Lupton Road, Wallingford, and Marcham Road in Abingdon.
Three people wrote in to support the new Lidl, recognising the benefits of a discount food store and the further jobs it will create.
Lidl has said its proposals for a Didcot supermarket would deliver 40 full-time equivalent jobs as well as further employment during the construction phase.
No opening date was given by the retailer, while the developer is currently on site progressing with the enabling works.
A spokesman said: “We’ve seen demand for our affordable, high-quality products continue to rise in Oxfordshire, and we are committed to serving more communities in the area.
“Our new store will create around 40 new jobs and build on our continued growth.
“We’re excited to be a step closer to opening this store and thank everyone who has supported us on our journey so far.”
It also said the £12m investment would work with the 6,300 new homes allocated to be built, as per the local plan.
Dalcour Maclaren, a specialist in utilities and infrastructure, announced the news on June 22, following a detailed assessment of its operations, including governance, employee wellbeing, environmental impact, and social responsibility.
James Neil, CEO of Dalcour Maclaren, said: “This is a fantastic achievement for Dalcour Maclaren.
“B Corp status gives us the official badge that recognises everything that matters most to us in our culture, our values, and how we make decisions for our people and our clients. We thrive on doing things differently at DM and B Corp absolutely endorses this.”
The certification means the company meets rigorous standards of social and environmental performance, transparency, and accountability.
Dalcour Maclaren now joins more than 10,000 B Corps worldwide and over 2,600 in the UK, including well-known names such as The Guardian, Innocent Drinks, Patagonia, and The Big Issue.
Chris Turner, CEO of B Lab UK, said: “Welcoming Dalcour Maclaren to the B Corp community is hugely exciting. Its commitment to doing business differently will be an inspiration to others and will help spread the notion that success in business is as much about people and planet as it is profit.”
Dalcour Maclaren operates across the UK and Ireland, supporting major projects in energy, water, transport, and digital infrastructure. The company’s services include land, planning, environment, stakeholder engagement, and geospatial services.
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