One in three expect to work past retirement age as Living Wage Foundation warns “alarming number” heading into pension poverty

April 29, 2026

One in three (32 per cent) workers saving into Defined Contribution schemes who were polled as part of new Living Wage Foundation research expect to have to work past retirement age, with 10 per cent expecting never to be able to retire at all.

The research, based on a poll of 2,000 workers of whom 500 are on low pay, finds that a higher proportion of women, people renting, people living alone, and disabled workers expect to need to work for longer. For example, less than half (47 per cent) of those renting expect to retire by State Pension age.

The research suggests that many workers may have to work beyond pensionable age, with 7 in 10 (68 per cent) of those polled who could provide information about their workplace pension not saving at the Living Pension savings rate – the rate at which workers need to save each year to build a pension pot which will provide enough income for a decent standard of living in retirement.

Some groups are far less likely to be on track to save enough for retirement. Of those saving enough to avoid poverty in retirement:

Only 27 per cent are women
Only 19 per cent are people who rent their homes
Only 24 per cent live alone
Only 11 per cent are disabled

This suggests the workers most likely to benefit from a Living Pension (those who are most pessimistic about their retirement prospects) are least likely to have one.

The research finds that the Living Pension is overwhelmingly supported by workers and improves job satisfaction and retention:

85 per cent of workers polled say it’s important that employers do contribute enough into workers’ pensions to provide a decent standard of living in retirement.
50 per cent of Living Pension savers polled say their pension improves overall job satisfaction.
63 per cent of non-Living-Pension savers say it would improve job satisfaction if their employer helped them save at the Living Pension level.
32 per cent of Living Pension savers plan to stay longer with their employer than they otherwise would, to make the most of the pension scheme.

The Living Pension is a voluntary savings target for employers who want to tackle low pension saving, just as the real Living Wage tackles low pay. The scheme calls on employers to contribute at least 7% of a worker’s salary, significantly more than the legal minimum of 3%, as part of a total savings target of 12%. This can also be met through a cash benchmark of £3,150 a year, with a minimum employer contribution of £1,840.

The growing list of over 100 responsible employers driving up standards in employee pension benefits incudes large companies like Aviva, SSE plc and Everton FC, as well as dozens of small and medium sized businesses like pensions provider Penfold and Manchester Cat Clinic. Over 100,000 employees now stand to benefit from the measures so far.

Katherine Chapman, Executive Director of the Living Wage Foundation, said:

“We are seeing an alarming number of workers heading towards pension poverty, with one in three already expecting to work beyond retirement age and many fearing they may never retire at all. That is not the future any of us wants to face after a lifetime of work.

“Current pension contribution levels still fall short of what people need for a decent standard of living in retirement, with women, renters, disabled workers and people living alone at particular risk of being left behind.

“The Living Pension shows there is a better way. By choosing to go beyond the legal minimum, employers can help tackle pension poverty and give their staff greater confidence about their future, while also improving job satisfaction and retention today.”

Catherine Foot, Director of the Standard Life Centre for the Future of Retirement, said:

“Many people assume auto‑enrolment minimums are enough, when in reality they are likely to provide only a fairly basic standard of living in retirement. A Living Pension is particularly important in boosting pension savings for people living alone in retirement, women and disabled workers.

“Against that backdrop, this report is a timely reminder that pensions matter, and that people want confidence their savings today will support a decent standard of living later in life.

“As a Living Pension signatory, Standard Life supports efforts that encourage employers to look beyond minimum contributions. Better pension provision can improve confidence, financial security and ensures people have a retirement they can look forward to.”

Charlie Walker, Managing Director of Clean for Good, a Living Pension accredited cleaning provider, said:

“The increase to our pension contributions is part of our ethos to pioneer new standards in the UK cleaning sector. For our staff the direct benefit is big – and this accreditation validates both the work they do and cleaning as a good career choice. We believe that the Living Pension will help us retain staff, and as the first Living Pension cleaning company in the UK, we really stand out in the sector. There are plenty of organisations in other sectors where fair pension contributions are the norm, and cleaning companies should make every effort as well. It’s the right thing to do – do it!”

Andressa, employee and Cleaning Supervisor at Clean for Good, said:

“Prior to accreditation, I only knew about pensions from my payslip – I didn’t understand exactly how it worked. When I received an email that Clean for Good was offering a Living Pension, I decided to make the switch. It made me feel valued. It’s good to see that my employer is worrying about their employees. When I saw that they are willing to pay more, it’s such a valuable thing, because they don’t need to do it — but they care about us. I don’t want to work until I’m 100 years old, so if I can be saving now, I will do it. This will have a good effect on my future – giving me the opportunity of a good retirement where I won’t need to be working anymore and still have a good life.”

Source: A. Rose (2026) Worth the Wait? Worker attitudes towards workplace pensions. Living Wage Foundation.

The research is based on polling carried out by Survation between 22 January and 3 February 2026 of 2,001 people living in the UK who are currently paying into a Defined Contribution workplace pension, of whom 25 per cent (500 people) are paid below the Living Wage. Survation is a member of the British Polling Council and abides by its rules. As our survey was not weighted by pay, and includes 500 adults paid below the Living Wage, it is not directly representative of UK workers as a whole.