PLSA comments on Phoenix recommendations for state pension
20 June 2023
Alyshia Harrington-Clark, Head of DC, Master Trusts and Lifetime Savings at the PLSA, said: “There is much to support in Phoenix’s contribution to the debate on how to ensure people have enough income when they retire. The PLSA’s analysis shows that at today’s savings rates, 20% of households won’t reach the minimum standard of living established by our Retirement Living Standards, with those on very low incomes especially vulnerable.
“Any future review of the State Pension, which is low when compared to our international peers, should ensure that its value rises sufficiently to keep pensioners out of poverty.
“Setting a timeline to lift minimum automatic enrolment contributions should also be prioritised; it is the single most effective reform to get more people on the right track.
“We want to see employer contributions increase to 5% by 2030, so they match those of employees and achieve an overall pension contribution of 10%. And then, in the early 2030s, we think both employer and employee contributions should gradually increase by a further 1%, to a total of 12%.”
Mark Smith, Head of Media Relations
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Cali Sullivan, PR Manager
020 7601 1761 | [email protected]