Life is becoming increasingly expensive. For many, this has meant that paying into their pension has become a luxury they can no longer afford.

In fact, a poll from April 2022 revealed that a quarter of people are no longer adding to their pot, a figure that’s only likely to have increased as the cost of living continues to rise.ⁱ

Further research from Age UK states that life has become unaffordable for pensioners on low or moderate incomes,ⁱⁱ highlighting just how precarious this situation has become.

Pensions schemes have a duty to support all members and help them plan for retirement. As such, now is a good opportunity to identify and communicate with those who may need additional support to prepare for the future, for example – singletons.

Single individuals need to save more

A recent analysis from Standard Life suggests that single individuals need an income of £23,300 from their pension to enjoy a moderate standard of living. In this instance, a moderate standard of living is counted as being able to afford to run a car and take a two-week holiday abroad each year.

To make this lifestyle possible, they would need to have saved an estimated £315,000 (taking into account the state pension and an income purchased via annuity at £14,900 a year). This is a stark contrast to couples, who would only need to save £155,000 per person – a difference of £160,000.ⁱⁱⁱ

However, these figures may have climbed even higher. The Pensions and Lifetime Savings Association now puts the annual pension income for a single person to enjoy a moderate standard of life at £31,300 (requiring savings of £459,000).^iv

Remember, this is only for people to live a moderate lifestyle. To achieve what many strive for – a comfortable retirement – single individuals are estimated to need at least an annual income of £43,100 (which would require £675,000 in their pension pots).

audience may not necessarily be as successful with another.

Why do singletons need to save more?

The reasoning behind single individuals needing to save more is simple. Without another person to share costs with, people living alone must bear the brunt of increased mortgage, energy and food prices.

Plus, with no other income to rely on, they may also find saving more difficult. People in this position may not have the money to spare to put into their savings or may need to prioritise necessities over their pension, leaving them with less funds for their future.

Help single members with 3 simple steps

1. Identify your audience

You can only provide additional support if you’re speaking to the right people. Looking at your membership data is a quick way to find singletons who will benefit from hearing the research statistics above, as well as any support you want to give.

2. Gather resources

With so many resources out there, it’s important to find ones that you think will help your members most. Whether you want to link them to government guidance, direct them towards retirement savings tools or put together advice that will encourage them to save more proactively, these messages will form the heart of what you communicate.

3. Invest in communications that go further

Advice is only effective when people take the time to engage with it. Tailoring your communications to your audience and optimising them for maximum impact is a fantastic way to make sure members are receiving your messaging and know how to take appropriate action.

That’s where we come in. It’s our responsibility to help our clients communicate effectively with members and keep things simple, engaging, and memorable. We know what makes your members tick and how to grab their attention. From ideation to delivery, we’re here to help every step of the way.

For a quick idea of how we can help browse our case studies.