The Pensions and Lifetime Savings Association (PLSA) comments on the Association of British Insurers’ report, ‘Automatic Enrolment: What will the next decade bring?’
Nigel Peaple, Director Policy & Advocacy, PLSA said: “The PLSA has long argued that current pension contribution levels are not likely to give people the level of retirement income they expect or need.
“The ABI has set out some very welcome proposals regarding automatic enrolment and pension adequacy.
“As the Government seeks to ‘level-up’ the economy, narrowing wealth disparities between regions and different demographics, we think now is the right time for it to commit to a timetable for levelling up pensions, gradually, over the next decade, in three affordable steps.
“First, from the mid-2020s, the Government should implement its plans of extending pension savings to the over 18s and commence pension saving on each pound of savings. Then around the end of the decade, pensions should be “levelled up” so that employers match employee contributions. This would mean 10% of pay goes into pensions but would not require extra contributions by workers. Finally, when affordable, in the early 2030s, contributions should be increased to 12%.”
“In the autumn, the PLSA will be publishing new research on how much people are saving for retirement to help build a fresh consensus among policymakers, business, workers, the pensions industry and others on how to ensure the UK pension system delivers adequate income in retirement for everyone.”
Mark Smith, Senior PR Manager
020 7601 1726 | [email protected]
Steven Kennedy, Senior PR Manager
020 7601 1737 | 07713 073024 | [email protected]