How pension wealth is spread
Pension wealth is highly concentrated: the top decile of savers held 64% of all private pension wealth, while the bottom five deciles held less than 1% between them, in the ONS survey for April 2018 to March 2020 (ONS, published June 2022). That concentration is the main reason the mean sits so far above the median.
Participation, by contrast, is broad and rising. Around 57% of people aged 16 to State Pension age were contributing to a private pension in April 2018 to March 2020, up from 43% in 2010 to 2012 (ONS, Apr 2018–Mar 2020), and around 89% of eligible employees were saving into a workplace pension by 2024 (DWP, 2024). More people are building pots, even if many of those pots are still modest.
Why the average moves. Because the top decile held 64% of private pension wealth and had a median pot of £637,500, while the first three deciles had a median of £0, the arithmetic mean is pulled well above what most people hold (
ONS, April 2018 to March 2020). For a sense of a typical saver, the median is usually the more useful figure.
What the numbers mean
Taken together, the data suggests that most people hold a modest pension pot while a smaller group holds a large one, and that the figure rises sharply with age. A median of £48,000 across the population on the updated model (ONS, published December 2024), against £37,600 for those aged 55 to State Pension age and £107,300 for the still-working subset of that group (ONS, Apr 2018–Mar 2020), shows how much timing shapes the answer.
A few observations, offered as general commentary rather than advice:
- Averages can mislead. A single average pension pot figure can be far above what a typical saver holds, so comparing yourself to a mean may give a distorted picture. The median tends to be the fairer benchmark.
- Age matters more than most single factors. Because pots build late, a low figure earlier in life is common and does not, on its own, say much about the eventual outcome.
- Concentration has consequences. With the largest pots held by a minority, pension wealth is now large enough that it often interacts with a family's UK pension wealth position and its estate planning, especially given the tax change described below.
How any of this applies to a particular household depends on circumstances, and the figures change over time. Many people choose to discuss pension and estate questions together with a qualified professional, such as an FCA-authorised financial adviser for the pension itself and a solicitor or STEP practitioner for the estate.
Pension pots and inheritance tax from 2027
From 6 April 2027, most unused pension funds and death benefits will generally be brought within the value of a person's estate for inheritance tax, HM Treasury has confirmed (gov.uk, as at July 2026, subject to change). Given the scale of pension wealth, this links the size of a pension pot to a family's future tax position in a way it did not before.
Inheritance tax is charged at a standard 40% on the part of an estate above the available tax-free thresholds, with a reduced rate of 36% where at least 10% of the net estate passes to charity. The nil-rate band is £325,000 per person and the residence nil-rate band up to £175,000, so a married couple or civil partners may pass on up to £1,000,000 in some circumstances, with these thresholds frozen until the end of the 2030 to 2031 tax year, meaning 5 April 2031 (gov.uk/inheritance-tax, as at July 2026, subject to change). Because a pension may now count towards that total, some people are reviewing how a pot sits alongside the rest of their estate. Our Inheritance Tax Explained guide covers the thresholds, and the UK pension wealth page looks at the 2027 change in more detail.
A pension pot used to sit largely outside inheritance tax. From April 2027 the picture changes, which is why the size of a pot and the size of an estate are worth understanding together.
Sources and methodology
Every statistic on this page comes from a named official source and is dated to its reference period. The ONS figures are drawn from the Wealth and Assets Survey, a biennial survey of households in Great Britain; the ONS notes that methodological changes, including the December 2024 revision to defined benefit pension wealth, mean some series are not directly comparable across releases.
- ONS, Estimating defined benefit pension wealth in Great Britain (December 2024) (updated median £48,000 and mean £123,100 total private pension wealth, April 2018 to March 2020). View source.
- ONS, Saving for retirement in Great Britain, April 2018 to March 2020 (median pension wealth by age, distribution deciles, participation). View source.
- ONS, Pension wealth in Great Britain, April 2016 to March 2018 (aggregate £6.1 trillion private pension wealth). View source.
- DWP, Workplace pension participation and savings trends, 2009 to 2024 (89% participation in 2024). View source.
- gov.uk, new State Pension (full new State Pension of £241.30 a week, as at July 2026, subject to change). View source.
- gov.uk, Inheritance Tax on unused pension funds and death benefits (2027 change). View source.
- gov.uk, Inheritance Tax (nil-rate band and rates, as at July 2026, subject to change). View source.
Frequently asked questions
What is the average pension pot in the UK?
On the ONS updated defined benefit model, median total private pension wealth in Great Britain was £48,000 for April 2018 to March 2020, while the mean was £123,100 (ONS, published December 2024). The two differ because a minority of large pots raise the mean, so the median usually describes a typical saver more fairly. Figures cover Great Britain and are subject to revision.
What is a good pension pot by age?
There is no official target, and what is enough depends on circumstances. As a reference point, ONS median pension wealth rose from £500 for people aged under 35 to £37,600 for those aged 55 to State Pension age in April 2018 to March 2020 (ONS). These are population medians, not recommendations, and a suitable figure can be discussed with an FCA-authorised adviser.
Why is the average pension pot higher than the typical one?
Because pension wealth is concentrated. The top decile of savers held 64% of all private pension wealth, with a median pot of £637,500, while the first three deciles had a median of £0, in April 2018 to March 2020 (ONS). That skew pulls the arithmetic mean well above the median, which better reflects a typical saver.
Does the average pension pot include the State Pension?
No. The ONS pension pot figures measure private pension wealth, meaning workplace and personal pensions, and do not include State Pension entitlement. The full new State Pension is a separate weekly payment of £241.30 (gov.uk, as at July 2026, subject to change). Many people rely on a combination of the State Pension and private pension wealth in retirement.
Will my pension pot be subject to inheritance tax?
From 6 April 2027, most unused pension funds and death benefits will generally be included in the value of an estate for inheritance tax, charged at a standard 40% above available thresholds such as the £325,000 nil-rate band (gov.uk, as at July 2026, subject to change). Some death-in-service benefits are outside the scope, and how this applies depends on individual circumstances.
Do these pension pot figures cover the whole UK?
The ONS Wealth and Assets Survey covers Great Britain, meaning England, Scotland and Wales, not the whole United Kingdom, so Northern Ireland is generally excluded from these particular figures (ONS). Inheritance tax applies UK-wide, though some other rules differ across UK nations. It is worth checking the geographic coverage of any given statistic.
About Fairchild Oldfield
The Fairchild Oldfield team brings together estate planning, tax, independent financial advice and client care, working with families across England and Wales.
Fairchild Oldfield are estate planning specialists and will writers, not a firm of solicitors. This article is general information based on published official statistics and practical experience, not legal, tax or financial advice.
Important: This article is general information only and is not legal, tax or financial advice. Reading it does not create a professional relationship. It is based on the law of England and Wales, and other UK jurisdictions may differ; the statistics cited cover Great Britain unless stated otherwise. Figures and rules are current as at July 2026 and are subject to change, and official statistics are subject to revision. Before acting, many people choose to seek advice from a suitably qualified professional, such as a solicitor, a STEP practitioner, an accountant, or an FCA-authorised financial adviser, who can consider your individual circumstances.
