It seems it’s not just sunnier in the South, as Northern pension pots are struggling to close the divide.
According to data released today by pensions investment firm PensionBee, there is a stark separation between the average pension pot sizes of the UK’s Southern and Northern regions.
Conducted on a sample of 5,098 savers, the average retirement savings pot nationally comes in at around £21,441. As evidence of the divide, those positioned in the South East of England have put away the most money at £28,183, while savers in the North East have only deposited an average of £14,513.
The savings gap also spreads out across the UK’s constituent countries, with Wales (£15,473), Northern Ireland (£14,796) and Scotland (£21,482) all falling below the leading Southern regions. Despite these numbers, Wales is home to the most frequent savers, with 40 per cent of customers contributing to their pension every month.
Northern Ireland also leads in terms of contribution size, putting around £310 per month into their pensions on average. When the difference in average salary compared to those in South is taken into account, savers in the North are often more diligent when it comes to preparing for retirement.
In fact, PensionBee’s data shows that Londoners are set to live on just 22 per cent of their current income based on the frequency and size of their contributions, inclusive of the state pension, which is the lowest overall percentage in the analysis.
Speaking on the findings Romi Savova, CEO of PensionBee said: “The data clearly shows that the most important part of a pension is how much you put in. The government has made it attractive to save and as an industry we need to do the same, by improving customer service and embracing technology. We’re passionate about taking the lead on this and closing the pension gap across the country.”