Are Freelancers Geographically and Financially Challenged in Retirement?
New research has found major regional differences in UK pension incomes, with even affluent areas falling short of comfortable retirement standards. But savvy freelancers have unique advantages to build wealth and leverage “geographic arbitrage” for a more secure financial future.
UK pensioners fall short of comfortable retirement standards
New research from Bower Home Finance has examined the gap between actual pensioner incomes and the Retirement Living Standards benchmark for a comfortable lifestyle. The findings are sobering. Even pensioner couples in the South East only reach 90% of a comfortable retirement income, whilst single pensioners achieve just 56%.
However, what the data doesn’t reveal is that today’s freelancers have unprecedented opportunities to outperform traditional workers in retirement planning. This may seem insurmountable for those who haven’t started saving for a private pension. However, unlike employees who rely on fixed workplace pensions, freelancers have the flexibility to build multiple income streams, scale their earnings, and create wealth that works for them in retirement.
How freelancers hold the cards for retirement success
The retirement income statistics initially appear challenging: research from IPSE shows 45% of freelancers aren’t currently saving into pensions. However, those who do can have significant advantages over traditional employees.
Traditional employees typically contribute 8% of earnings (5% from the employee (including tax relief) and 3% from the employer). As a freelancer, you can contribute far more during profitable years, benefit from the same tax relief, and maintain complete control over your investment choices.
Geographic arbitrage: a freelancer’s secret weapon
Regional pension income data reveal strategic possibilities for forward-thinking freelancers.
Top-performing regions
South East leads the way, with pensioner couples receiving an average of £1,051 per week. That’s reaching 90% of the £1,165.38 weekly income needed for a comfortable retirement. Single pensioners fare worse at £469 per week (56% of the £844.23 required), yet still rank first nationally.
London follows closely, with couples earning £1,025 weekly (88% of comfortable standards) and singles receiving £462 weekly (55% of requirements).
Scotland and East of England tie for third place, with couples in both regions receiving £919 weekly (79% of comfortable standards). Single pensioners in the East perform slightly better at 51% of requirements, compared to Scotland’s 50%.
Mid-tier region retirement income comparison
The South West rounds out the top five for couples with £913 weekly (78% of comfortable standards), whilst single pensioners there rank third nationally with £459 weekly (54% of requirements).
The North West places sixth for couples at £812 weekly (70% of targets), but single pensioners struggle more, ranking tenth with just £398 weekly (47% of requirements).
Lower-income retirement regions
Wales sees couples averaging £808 weekly (69% of comfortable levels), with single pensioners receiving £421 weekly (50% of standards).
The East Midlands couples average £800 weekly (69% of comfortable levels), whilst single pensioners perform better relatively, ranking fourth nationally with £432 weekly (51% of standards).
In the West Midlands, couples earn £780 weekly (67% of standards), with single pensioners receiving £420 weekly (50% of benchmark).
Northern Ireland presents the greatest challenges, with couples managing £776 weekly (67% of comfortable income) and single pensioners facing the steepest struggle at just £371 weekly—the lowest nationally at 44% of requirements.
Yorkshire and the Humber couples fare similarly with £759 weekly (65% of comfort levels), whilst single pensioners rank ninth with £401 weekly (47% of ideal standards).
The North East ranks lowest for couples at £740 weekly (63% of standards), with single pensioners receiving £388 weekly (46% of requirements).
The strategic advantage of location independence
“These figures show a worrying reality – many pensioners in the UK are falling short of the income needed for a comfortable retirement,” says Geoff Charles, CEO of Bower Home Finance.
He says single pensioners face the toughest challenge, falling short of the comfort level in every part of the UK.
“While couples can stretch their income further by pooling resources, those living alone often struggle much more to make ends meet,” says Charles. “The shortfall is especially stark in Northern Ireland, where single retirees receive just 44% of the income considered necessary for a comfortable lifestyle – the lowest figure in the UK.”
He says for those getting close to retirement, this is a reminder that it’s not just about the size of your savings:
Where you live can make a big difference to how far your money goes – and the lifestyle you’re able to enjoy. Sometimes, moving somewhere with lower living costs can stretch your income further and make day-to-day life feel that much easier.
This is where freelancers can hold a significant advantage. Remote work enables you to earn London or South East rates whilst potentially retiring in regions with lower living costs. Your £1,000 weekly freelance income stretches considerably further in the North East than in London.
This location flexibility provides a massive advantage over traditional employees tied to specific geographical areas. However, those contractors who have to be office-based can still think ahead by preparing for a future move.
Now, this is not a solution for everyone, especially if you want to be close to family. That could mean you might opt for multi-generational living with family members or just move to the next county if it is more cost-effective.
Taking control of your retirement future
The data reveals both challenges and opportunities. Whilst traditional pension systems are failing many retirees, if you recognise these advantages and act upon them whilst you still have earning potential, you could have peace of mind.
Regional pension incomes compared to comfortable retirement standards
| Region | Pensioner couples’ weekly income | Percentage of comfortable standard (couples) | Rank (couples) | Single pensioners’ weekly income | Percentage of comfortable standard (singles) | Rank (singles) |
| South East | £1,051 | 90% | 1 | £469 | 56% | 1 |
| London | £1,025 | 88% | 2 | £462 | 55% | 2 |
| Scotland | £919 | 79% | 3 | £426 | 50% | 6 |
| East | £919 | 79% | 3 | £431 | 51% | 5 |
| South West | £913 | 78% | 5 | £459 | 54% | 3 |
| North West | £812 | 70% | 6 | £398 | 47% | 10 |
| Wales | £808 | 69% | 7 | £421 | 50% | 7 |
| East Midlands | £800 | 69% | 8 | £432 | 51% | 4 |
| West Midlands | £780 | 67% | 9 | £420 | 50% | 8 |
| Northern Ireland | £776 | 67% | 10 | £371 | 44% | 12 |
| Yorkshire and the Humber | £759 | 65% | 11 | £401 | 47% | 9 |
| North East | £740 | 63% | 12 | £388 | 46% | 11 |
Here’s to hoping geographic arbitrage, flexible pension contributions and multiple income streams can transform your prospects from concerning statistics into a comfortable semi or full-time retirement.
