UK Financial Planning Week: Average UK pension pot peaks “in your fifties” whereas ISA valuations peak “in your seventies”

by | Jan 23, 2024

Share this article

Photo of retired couple

In light of financial planning week, data from Twenty7tec, leading adviser tech provider, shows, on average, the total value of people’s pensions peaked during their fifties. 

At around 50 years old, the average total pension value plateaus, whereas the average ISA value continues to rise until it reaches its maximum when people are in their seventies.

Findings taken from anonymised data from over 900,000 client records held on its FINPLAN Wealth practice management system show the average pension savings for various age groups is:

 
 
  • Ages 20 -29 have £21,995
  • Ages 30 – 39 have £45,520
  • Ages 40 – 49 have £105,115
  • Ages 50 – 59 have £223,881
  • Ages 60 – 69 have £223,441
  • Ages 70 – 79 have £175,421

With the average ISAs being: 

  • Ages 20 -29 have £25,373
  • Ages 30 – 39 have £26,674
  • Ages 40 – 49 have £59,212
  • Ages 50 – 59 have £72,906
  • Ages 60 – 69 have £91,960
  • Ages 70 – 79 have £109,515

James Tucker, CEO of Twenty7tec, says: “Financial planning week helps to raise awareness of finances and debunk myths; it’s helpful for people to see the average pension value by age group, as you might expect people in their twenties to have a lower pension value and a higher ISA value. 

“Our working assumption is that people start to draw on their pensions at age 55, as they’re entitled to, which is why they peak around the age of 54 – 55. As the population ages, we’d expect this figure to drift to slightly older as a peak over the course of the next decade.

 

“There are two phases of life where the values of people’s ISAs on average outstrip the value of their pension pots: in your twenties, when most people are just getting saving, and in your nineties, when most people have long been drawing on their pensions. Pensions and ISAs are worth the same for people on average at roughly the ages of 34 and 92.”

Twenty7tec also found that individuals working in the following industries had on average the highest average ISA savings:

· Fashion £300k

 

· Professional Landlords £177k 

· Chemists £142k

When it comes to the average pension value, it found that individuals working in the following industries had the highest level of individual pension savings:

 

· Chemists £464k

· Armed Forces £356k

· C-Suite Executives £338k

 

James Tucker adds: “People may automatically think that C-Suite Execs would lead on having an effective and highly valuable retirement plan in place, funded by both ISA and Pension savings. Our data however, shows that people in other professions may be more conscious of the need for effective retirement planning. 

“We all know that financial advice isn’t one size fits all, and nor should it be. Whilst we may reasonably expect C-Suite Execs to be amongst the higher earners, it does not mean that their approach to retirement planning is as effective as people in other, arguably less well-paid professions. The role of an adviser, supported by effective technology, is clearly critical in helping people in all professions plan and save for a long and enjoyable retirement. 

“Of course, it’s important to note that the job role was listed when seeking financial advice, and people may have multiple careers in their life.” 

 

Share this article

Related articles

Sign up to the IFA Magazine Newsletter

Trending articles

IFA Talk logo

IFA Talk is our flagship podcast, that fits perfectly into your busy life, bringing the latest insight, analysis, news and interviews to you, wherever you are.

IFA Talk Podcast - listen to the latest episode

x