Sandra Garlick, 65, is approaching the state pension age without any private pension savings, highlighting a financial challenge shared by millions of people nearing retirement. Despite having worked in various jobs, including running her own law firm, Sandra has no pension pot to rely on when she reaches retirement.
Sandra’s experience reflects broader trends affecting many in her generation, particularly women. A study by the UCL Centre for Longitudinal Studies found that one in six people in their late 60s have no private pension and hold less than £25,000 in household savings. Although Sandra will receive the state pension from age 67, which currently provides £12,547.60 annually, this amount falls short of covering a minimum living standard estimated at around £13,900 a year. A moderate retirement lifestyle typically requires an income of approximately £32,700 annually.
Sandra worked in roles such as banking and real estate during her early career, none of which offered workplace pensions before the introduction of auto-enrolment in 2012. Auto-enrolment requires employers to contribute a minimum of 3 percent to employees’ workplace pensions, with employees contributing 5 percent, but this system does not apply retroactively to those already working before its initiation. Additionally, self-employed individuals and low earners are generally excluded from automatic pension schemes, factors that have contributed to Sandra’s situation.
Her career was also interrupted by personal circumstances. Sandra married at 19, had two children, and paused her professional life for several years, during which she did not contribute to a pension. Following a divorce at age 30, she did not receive any pension assets from her ex-husband and chose not to pursue a share. Later, after qualifying as a solicitor and establishing her own firm in 2007, she remained self-employed, limiting access to employer pension provisions. Sandra also provided financial support for her two sons over the years, helping them secure homes and achieve financial independence.
Despite the lack of pension savings, Sandra is optimistic about her retirement prospects. She plans to continue working for at least another decade while making monthly pension contributions of £1,000, benefiting from basic-rate tax relief that effectively increases her investment. Sandra also intends to explore other savings options, including ISAs, and considers downsizing her home to free up capital.
Retirement specialists note that it is possible to make meaningful pension contributions even after reaching state pension age, provided individuals have sufficient taxable income to support such payments. Gary Smith of Evelyn Partners highlights that tax relief on contributions is available up to age 75. Marianna Hunt of Fidelity adds that regular monthly investments starting at age 65 could grow substantially over ten years, potentially reaching nearly £200,000, assuming consistent returns and tax relief.
Experts recommend that individuals approaching retirement seek advice through free services such as the government’s Pension Wise program, which offers guidance on managing retirement options. Sandra encourages others in similar situations to leverage their skills and experience to create income-generating opportunities, stressing that career breaks or caregiving roles do not diminish one’s potential to build financial security later in life.
“I’ve told my children I don’t want to be a burden,” she says. “If I can’t work or look after myself, I don’t want them to take me in. A local council care home will do fine, and I’ll be happy.”