Unbiased launches free retirement readiness score quiz to show UK savers if they're on track

Unbiased has launched a free retirement score quiz, giving UK consumers a personalised score out of 100 showing how prepared they are for retirement, along with a breakdown of any income shortfall and the levers available to close it.

The quiz takes around three minutes to complete and asks users a short series of questions about their age, pension savings, contribution levels and desired retirement lifestyle.

It then compares their projected retirement income against a target based on the Pensions and Lifetime Savings Association's Retirement Living Standards, which set out the annual income needed for a minimum, moderate, comfortable or luxury retirement.

How the retirement score works

Rather than producing a single generic figure, the retirement score models each user's likely income sources separately, including their defined contribution pension pot, any other investments, and their estimated state pension.

Projections use a 2.5% real annual growth assumption (net of inflation) and apply the 4% rule as a long-horizon safe withdrawal guide.

The results page shows a user's years to retirement, their target annual income for their chosen lifestyle, and their projected annual income, alongside any shortfall in pounds and as a percentage of their target covered.

Where relevant, it also flags if someone's savings are projected to run out before the end of a typical retirement, rather than only showing a single point-in-time snapshot.

Testing retirement scenarios to close the gap

The quiz's most useful feature for many users is likely to be its interactive scenario modelling.

Once someone has their score, they can adjust sliders to see, in real time, how increasing their pension contribution, delaying their retirement age or changing their lifestyle target would affect both their score and their projected income.

Why retirement confidence remains low

The launch comes against a backdrop of persistently low confidence among UK savers about their retirement prospects.

Separate Unbiased analysis has found that only 18% of UK adults feel very confident in their retirement plans, while roughly a third of British adults have no retirement plan in place at all.

The gap between what people are saving and what they are likely to need in retirement is often only made concrete when they see it laid out in pounds and pence, which is the gap the retirement score is designed to close.

For couples, the PLSA's Retirement Living Standards put a moderate retirement at an annual income of £31,300, rising to £43,100 for a comfortable retirement, figures that many defined contribution savers are not currently on track to reach without adjusting their contributions, retirement age or expectations.

How to use the retirement score

The retirement score is free to use and available now at unbiased.co.uk/tools/retirement-score.

Users are not required to create an account or provide personal financial account details to get a result.

Anyone concerned about a shortfall the quiz identifies can go on to speak with an FCA-regulated financial adviser through Unbiased, who can assess their full financial circumstances and recommend a course of action tailored to their goals.