In September 2024, the Institute and Faculty of Actuaries (IFoA) launched the first phase of a campaign on pension gaps entitled ‘How much could you lose?’, igniting a national conversation on pension gaps and the hidden costs of life’s decisions on retirement income.
Phase one modelling from the campaign revealed startling truths: a six-month parental leave, a switch to part-time work, or delaying pension contributions by just five years can reduce retirement income by tens, or even hundreds, of thousands of pounds.
Building on this, phase two goes deeper – illuminating the human stories behind the numbers. Partnering with Ipsos, we used ethnographic research and filmed interviews to understand not just what the gaps are, but why they persist and how they shape people’s lives. These narratives highlight the challenges faced by many in the UK in terms of pension saving.
The IFoA has used the documentary, as well as all the work during phase one of the campaign, to create a new report entitled ‘A pension system fit for the 21st century: the stories behind pension gaps’.
View the documentary video below, as well as more information on the individual stories of those interviewed.
“I’ve been meaning to do it for a while and every time I look at it, it almost gets more and more confusing. It seems so daunting to even look into it.” – India, freelance leatherworker
Our recommendations, which we look forward to exploring further with government, industry, and consumer representatives, include:
The IFoA engaged Ipsos to conduct ethnographic research on pension gaps for this report. Ipsos interviewed UK pension savers and pension experts to uncover the personal stories behind those facing pension gaps. These narratives highlight the challenges faced by many in the UK in terms of pension saving.
India is a self-employed leatherworker who sells her products through Etsy and at local markets. Over time, she has built up her business – testing new designs, building a customer base, and managing her income and taxes. Self-employment gives her the freedom to pursue her creative work and build something of her own.
Day-to-day, she feels financially in control. Preparing for later life, however, is more difficult. Without the automatic pension contributions that come with traditional employment, there is more to figure out, and there are fewer clear entry points. “It’s really bad, but I don’t understand,” she says of private pensions.
Having worked in cafés and other casual jobs in the past, she believes she may have small pensions from previous roles, but retrieving or combining them is not straightforward. Her uncle, recently retired, often tells younger relatives to get a pension “because you will need it.” The advice lingers. India half-jokes that she hopes others are also still working it out: “I really hope other people haven’t got it all sorted either.”
Meghan lives with her sister India in a flat share. Since finishing their university studies, both have worked for multiple employers in a mix of roles, including casual, overseas, and formal contract work. Today, Meghan is a part-time charity worker, and India is a self-employed leatherworker. They receive an overwhelming number of communications from different employer pension providers, as well as from private pension providers.
Despite the volume of options offered and advertised in the emails, letters and notifications they receive, they don’t feel any clearer about what to do next. The information is fragmented, terminology inconsistent, and there is no clear guidance for people with work patterns like theirs. Meghan is seeking a pension product that reflects her current situation and might be considered a ‘standard’ option for someone in her position. Yet the tools to identify such a path are lacking.
At the same time, both sisters face ongoing financial pressures, including high housing costs and general cost of living increases. They support one another by sharing financial strategies – comparing ISA rates or exchanging tips on saving money in daily life – but navigating pensions continues to feel opaque and out of reach.
Sachit is strongly inspired by his parents, who started with very little when they moved from India to Australia. They built a good future for their family through finding stable work and careful planning, making regular savings and investments.
Having recently married and moved to the UK, Sachit is now thinking seriously about his own future and financial security. He has been making careful budgeting decisions, tracking his expenses closely to find ways for him and his partner to know where they can make additional savings each month. At the same time, his father, who is approaching retirement age himself, has been urging him to start contributing more towards retirement, not just relying on the mandatory pension deductions. “My dad’s been on my back about that,” Sachit says.
Taking the advice to heart, Sachit has started putting aside an additional £100 a year into his pension, seeing it as a small but important way to build a stronger financial foundation for himself and his new family. He credits his parents’ example and the important conversations they’ve had about retirement for his proactive mindset towards financial planning.
Emmanuel experienced a long period of joblessness during the Covid-19 pandemic, at a time when he and his wife were expecting their first child. The uncertainty of that period was deeply stressful. He struggled to find work, despite official claims that jobs were available. Emmanuel felt like the job market had collapsed. Brexit and the pandemic had created a strange and difficult economic climate unlike anything he had experienced before.
During this time, the family’s stability depended entirely on his wife’s income. Her permanent role meant she was still being paid. Emmanuel recognises that this consistent income was what kept them afloat. Eventually, he secured a job with the NHS, which marked a turning point. Their household income improved, and the financial pressure began to ease.
Reflecting on this period, Emmanuel sees how fragile income and employment can be, and how essential it is to have savings or reliable financial systems in place to manage sudden shocks. For him, thoughts about private pensions and future planning only became possible once stability returned. His experience highlights the difficulty of building a financial safety net, including pensions, without consistent, secure work or institutional support.
Sam and Jake live in each other’s pockets – they’ve stuck together through personal, professional, and financial challenges and created a relationship where no topic is off the table for discussion. They don’t think twice about lending each other money, childcare support, emotional advice, and know it will come back in return when needed.
Both have held a range of jobs over the years – some more stable or better paid than others – which has shaped their access to pension entitlements in the longer-term. “I’ve never had a decent salary that I could put away. I was never taught to save or to invest and that’s what it’s all about”, admits Sam.
Between them, they’ve tried different financial products, admittedly with little guidance or support, and trade advice about banks which they trust or don’t. Nationwide stands out to Sam as “friendly, generous and nice”, qualities he values highly in a financial institution and which he sees as exemplified in the building society’s decision to give customers a share of profit margins.
Without reliable employer guidance or clear financial advice, Sam and Jake have been left to navigate the system largely on their own. In this context, exchanging tips and offering mutual support has become a vital survival strategy.
