13 Million Britons at Risk of Falling Short in Retirement: Time to Rethink Your Plans for 2025

As we start 2025, retirement planning has never been more urgent, as figures show that 13 million working-age adults in the UK—nearly two in five—are not saving enough for a comfortable retirement[i]. With life expectancy rising and the ongoing cost of living crisis putting additional strain on finances, millions of Britons face the very real risk of falling short in retirement, warns Steve Butler, Managing Director of Pension Potential.

Data from the Resolution Foundation[ii] reveals that many of these individuals are falling short of the basic target for a decent retirement income. Additionally, research from Royal London has uncovered a growing trend of “ostrich syndrome[iii],” with one in eight people admitting they’ve never checked their pension savings.

Steve Butler explains: “As we enter 2025, it’s crucial that people stop avoiding the reality of their retirement needs – planning for a secure retirement is no longer optional—it’s essential. This is the year to act, before it’s too late.”

Why so many are missing the mark

The latest figures from the Financial Conduct Authority (FCA)[iv] paint a worrying picture: In 2023/24, 69% of more than 885,000 pension pots accessed for the first time were done so without professional advice. Many individuals made unsustainable withdrawal choices, opting for annual withdrawal rates of 8% or more, which puts their funds at risk of depleting prematurely.

For those who are not getting proper guidance, annuities—a solution that offers guaranteed income for life—are often overlooked. However, a positive shift is underway. Annuity sales have surged by 38.7% year-on-year, driven by rising interest rates and an increasing demand for financial stability[v]. As more people recognise the value of a predictable income stream, annuities are becoming an important part of retirement planning in 2025 and beyond.

Digital Hybrid Solutions: A game-changer for 2025

With the growing need for effective retirement planning, hybrid digital tools that combine technology, digital advice and human guidance are emerging as a solution. Pension Potential, recently named a leader in hybrid retirement solutions by Defaqto, is bridging the retirement advice gap, helping people access affordable and accessible retirement planning tools.

Steve adds: “Digital hybrid solutions are a game-changer. They’re affordable, easy to use, and they combine smart technology with expert advice to help you take control of your future. Tools show you how much you’ll need, guide your savings, and give you access to tailored recommendations and low cost regulated advice – all without breaking the bank.”

Pension Potential offers a range of tools, including online retirement calculators, an ‘all-market’ annuity search engine, and a simple advice journey. After using the tools, users can connect with a financial adviser via video call to receive advice on retirement products like drawdown and annuities. The process is transparent, with a £500 advice fee and an implementation fee of just 1% of the pension value.

Customers have praised the straightforwardness of Pension Potential’s services:

One client shared: “The advice I received was clear and professional. Pensions can be complicated, but the process was made easy with detailed explanations. I felt confident every step of the way.”

Another commented: “The advisor explained annuity options in plain language, which helped me make the right choices. The whole process was smooth, with forms sent for checking and signing within 24 hours.”

A third said: “The calculator was easy to use, and the adviser explained everything in a way that was simple to understand. I felt fully informed and confident in my decisions.”

For more information, visit: www.pensionpotential.co.uk.