Calls for a ‘pension checkup’ to be introduced have grown, after research from M&G revealed that, despite "encouraging" behaviour among younger savers, one in five adults, nearly 11 million people, delay planning for retirement until aged 40 or after.

The study found that there were signs of engagement, as more than a third (35 per cent) of Brits started to plan for retirement before the age of 30, and the average age of pension awareness at 31.

The firm suggested that by age 35, many are already actively managing their retirement savings, consolidating pots, seeking advice, or adjusting contributions, challenging the stereotype that younger generations are disengaged from long-term financial planning.

However, there were clear gaps, as M&G found that 20 per cent are delaying planning for retirement until aged 40 or after.

The study also showed that one in six (16 per cent) adults have no pension at all, rising to nearly one in five (19 per cent) women.

Among those with a pension, almost half (44 per cent) do not know its value.

The research also highlighted a gender gap in engagement, with men who have a pension significantly more likely to know how much they’ve saved (59 per cent) compared with women (43 per cent).

Regarding the reasoning behind this, M&G found a complex mix of barriers that prevent some individuals from starting to save at a younger age.

Almost a third (30 per cent) of those without a pension said they simply can’t afford to save, while 19 per cent said it’s because they don’t have a stable job or income.

To help address this, M&G and the Social Market Foundation have called for a regular ‘pension checkup’ to encourage people to review their retirement savings and take timely action.

Public support for the idea is strong, with 42 per cent of 18-24-year-olds saying a “one-stop view” of their pension would help them engage more.

This initiative forms part of M&G’s Reframing Retirement campaign, which aims to challenge outdated perceptions of retirement and encourage better financial planning.

M&G managing director of individual life & pensions, Anusha Mittal, emphasised that pension saving is about “building momentum” and “is never about getting everything perfect from the start”.

“A regular pension check-up, just like a health check, can help you stay on track and make informed decisions. The earlier you engage, the more freedom and confidence you’ll have later on,” he stated.

The firm highlighted the “substantial” financial impact of starting to save earlier, as a person who begins saving at age 23, the average age for entering full-time work, could build a pension pot worth £596,000 by retirement age, assuming they are contributing 8 per cent on average of their salary through auto-enrolment.

In contrast, it pointed out that if a person were to wait until age 31 to start saving into their pension and their pension pot could be worth £450,000 at age 68 - a difference of £145,000 achieved with less than £20,000 in additional contributions.

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