Flagstone says the UK’s retirement savings gap is becoming a business planning issue as well as a personal finance one, after new modelling suggested that only 14% of workers are on track to retire when they want and at the income they want.
The savings platform found that respondents would, on average, like to retire at 61, but based on current savings and contribution levels would not be financially able to do so until 83. That creates an average 22-year gap between expectation and likely reality. Flagstone argues that the consequences reach directly into payroll forecasting, succession planning, and workforce strategy.
The sector breakdown is particularly striking. Travel and transport showed the widest average gap at 28 years, with just 4.7% of workers on track. Education and retail, catering, and leisure also ranked among the weakest sectors. Arts and culture, finance, and IT and telecoms performed better, but none of the industries analysed were on track as a whole.
Katie Horne, savings expert at Flagstone, said: “The fact that only 14% of people are on track to retire when they want to is a significant finding – not just for individuals, but for the businesses that employ them. A workforce that retires later than planned is a workforce that costs more than planned. Finance teams that aren’t already modelling this risk may find themselves caught out.”
The company’s argument is that later retirements keep more experienced and often more expensive employees on payroll for longer, while also slowing promotion routes for mid-level staff who are expected to move into leadership positions. That shifts retirement readiness from an HR side issue into a longer-term cost and succession question.
Flagstone has published the research in full for employers and savers who want to view the study here.
