The ONS has today (Tuesday) released new data revealing the proportion of employees who contribute to a workplace pension has increased by almost a quarter, around 73% of UK employees had an active workplace pension scheme in 2017, up from less than 47% in 2012.
Commenting on the findings, Nigel Peaple, Deputy Director DC, Lifetime Savings and Research, PLSA, said:
“Today’s ONS data clearly shows the success of automatic enrolment with a large increase in the number of employees paying into a pension compared to 2012, particularly among younger age groups. This is extremely positive and will mean millions of people in the UK will be better off in retirement as a result, however the data also highlights that many of those saving are doing so at the minimum level.
“While the Government’s phased increases will see minimum contributions rise to 8% by 2019, there is a still a risk that this will not be enough to allow savers to live comfortably in retirement. We believe the minimum level needs to increase to 12% of salary over the course of the 2020s if retirees are to be financially secure. In our Hitting the Target report, we also argue that a simple and widely promoted system of retirement income targets would make it much easier for people to know whether they are on track to live the lifestyle they want in retirement.”
NOTES TO EDITORS
Robyn Margetts, Head of Media and PR, Pensions and Lifetime Savings Association
T: 020 7601 1726, M: 07713 073023, E: [email protected]
Eleanor Carric, PR Manager, Pensions and Lifetime Savings Association
T: 020 7601 1718, M: 07825 171 446, E: [email protected]
Kathryn Mortimer, Press Officer, Pensions and Lifetime Savings Association
T: 020 7601 1748, M: 07901 007713, E: [email protected]
ABOUT THE PENSIONS AND LIFETIME SAVINGS ASSOCIATION
We’re the Pensions and Lifetime Savings Association; the national association with a ninety year history of helping pension professionals run better pension schemes. Our members include over 1,300 pension schemes with 20 million members and £1 trillion in assets, and over 400 businesses. They make us the voice for pensions and lifetime savings in Westminster, Whitehall and Brussels.
Our purpose is simple: to help everyone to achieve a better income in retirement. We work to get more money into retirement savings, to get more value out of those savings and to build the confidence and understanding of savers.