DWP says we’re not saving enough, experts share step by step retirement plan

Experts say considering long-term protection like life insurance in your 20s could save you up to £440 a year, as thousands search for retirement advice every month.

• New data from Confused.com reveals the top questions Brits are asking about life after work. These include queries such as ‘age of retirement UK with 60,500 searches every month.

• Confused.com life insurance speaks to a financial planning expert to identify the ideal age to begin planning for retirement and why starting early makes a difference.

• Tom Vaughan, life insurance expert at Confused.com, highlights why life insurance remains a crucial part of a retirement plan.  Buying early could save people £440 per year on average.

People should be planning for retirement as early as their 20s, new insight reveals.

This may seem like an early time to start thinking about life after work. But Confused.com life insurance experts have worked with retirement finance specialists to uncover the benefits of early planning.

The experts identify exactly when people should start making small steps towards retirement. They’ve found that even modest savings habits and timely protection can lead to stronger financial security later on.

With over 400,000 monthly searches for retirement-related terms, it’s clear that planning for later life is a growing priority. New data2 shows that buying life insurance as early as your 20s not only protects your financial future, but can also be more cost-effective. Premiums could be up to £440 cheaper per year at this age compared to starting a policy in your 60s.

As part of long-term financial planning, life insurance is crucial, especially for those with dependents or shared financial responsibilities.

Delaying both retirement and protection planning can reduce your options later, potentially increasing reliance on the State Pension.

Searches for retirement keywords: What Brits want to know

Google search data1 shows an increase in searches for retirement keywords. This growing interest highlights that consumers are actively looking for answers around when and how to start preparing for retirement.

The data shows a consistently high level of interest in the topic of retirement, particularly around when people can expect to retire. Keywords under the topic of ‘retirement age (UK)’ total 366,800 monthly searches, pointing to widespread curiosity around retirement timelines and eligibility.

There’s also clear demand for practical tools, with ‘retirement calculator’ attracting 6,600 searches per month.Related terms like ‘retirement income calculator’ and ‘retirement age calculator’ bring the total for planning-related keywords to over 20,000. This underscores how people are actively seeking personalised financial guidance to plan for their later years.

In addition, financial and policy considerations are a key theme, with terms like ‘UK retirement tax pensioners’ (6,600), ‘retirement tax’, and ‘retirement mortgages’ showing strong interest. This reflects concern not only about how to afford retirement, but also the broader economic and housing factors involved.

Meanwhile, housing-related searches such as ‘retirement home’ and ‘retirement villages near me’ receive over 14,000 searches collectively. This suggests that many are exploring lifestyle options and care needs as they approach retirement.

Overall, the search trends point to a population that is highly engaged with understanding when they can retire. They’re also thinking about  how they can afford it, and what their lifestyle might look like. This highlights both financial pressures and personal planning priorities.

So when should you start planning?

To help people understand what steps they should be taking, and when, Confused.com spoke to Independent Financial Planning Consultant, Asad Khan. “Planning for retirement can be beneficial from the moment someone enters the workforce, around the age of 21, for example.

“Starting early allows more time for pension contributions to potentially grow through compound returns and investment performance over the long term.”

Asad Khan outlines the key actions you should be taking in each life stage:

20s – Join your workplace pension scheme, understand your employer contributions, and start building consistent saving habits. The earlier you start, the more you can benefit from the power of compound growth.

30s – Increase your pension contributions where possible, consolidate any old pensions, and start setting clear retirement goals to stay on track for the future.”

40s – Take time to assess your progress towards retirement targets.Review your investment strategies, and consider supplementary savings options like ISAs to help boost your long-term financial security.

50s – Prepare for income drawdown, reduce your investment risk, and finalise your retirement timeline. At this stage, it’s also wise to speak with an FCA-regulated financial adviser to make informed, confident decisions

Tom Vaughan, life insurance expert at Confused.com comments,“There’s often a lot of focus on saving for retirement, but not enough thought goes into what protection looks like at that stage of life.”

“Retirement doesn’t mean your financial responsibilities disappear, they just take a different shape. For some, it’s about covering final expenses or supporting a partner. For others, it’s about leaving something behind for the family”, Tom adds.

“That’s where life insurance can still play a valuable role. It’s not just for when you’re raising a family or paying off a mortgage. Including it in your later-life planning can help tie everything together,  giving you a bit more clarity and your loved ones some added peace of mind.”

How planning ahead can save you money

Tom explains, “The reality is, the earlier you buy a policy, the more cost-effective it tends to be. Life insurance premiums are largely based on risk and the younger and healthier you are, the lower that risk is considered to be. For example, depending on the time of purchase, the average monthly premium for someone in their 20s is just £13.74. By the time you reach your 60s, that average rises to £50.47 per month. That’s nearly 4 times more. Over the course of a year, you are looking at a difference of more than £4402.

“It is not only the younger age groups where savings can be made. Even buying a policy in your 50s, rather than waiting until your 60s, can result in a considerable saving. The average premium in your 50s is £35.66 a month, compared with £50.47 in your 60s. This works out as an annual difference of over £177.

“While these are the averages paid by different age groups, life insurance costs can vary depending on a lot of factors. This includes general health, or health history. Similarly, the amount of money you are insuring against can impact the price you pay. For example, if you are insuring against a £100k sum assured, you will be paying less than if this figure is higher.”

“Crucially, getting in early doesn’t just offer short-term savings. Many life insurance policies come with fixed premiums, meaning once you’ve locked in a low monthly rate, it stays the same for the duration of the policy. That long-term value is what makes early planning so worthwhile. It’s about affordability now, and financial security for the future.”

What’s changed about pension policy and what does it mean for your future?

Recent UK pension policy updates could impact your financial planning, including:

• The Value for Money (VFM) framework to improve workplace pension transparency

• Government plans to consolidate small pension pots

• Rollout of the Pensions Dashboards Programme, helping consumers track entitlements in one place

• Ongoing focus on clearer retirement income communication

These updates make it more important than ever to stay informed and review your pension plans regularly.

Asad adds, “Retirement planning is a long-term process that benefits from regular review and informed decision-making. As everyone’s financial situation and retirement goals are different, it’s strongly recommended that individuals seek independent financial advice.