Data published today by the UK Statistics Authority showed that the number of people saving in a personal pension* has fallen sharply, along with a decline in overall contributions.
Darren Philp, Director of Policy at the National Association of Pension Funds (NAPF), said:
“These trends reflect the current state of the economy and the impact this is having on UK households.
“It is understandable that people have more pressing financial priorities during difficult times, but contributing to a pension regularly is vital to ensure a decent income in retirement.
“The UK’s population is on a collision course with its own retirement. People are not saving enough and millions risk facing poverty in their old age.
“The auto-enrolment reforms being introduced from next year are likely to result in 5-9 million people starting to save into a pension or save more. This is a key opportunity to get the country saving for its old age.”
* Personal pensions (defined as contributions to personal pensions and contract-based workplace pensions).
Notes to Editors
1. The Pension Trends published by the UK Statistics Authority are available at http://www.ons.gov.uk/ons/release-calendar/index.html
2. The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,200 pension schemes with some 15 million members and assets of around £800 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
Christian Zarro, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, firstname.lastname@example.org