“There are now more people in an occupational pension than ever before. This meteoric rise in workplace saving is largely thanks to the introduction of auto-enrolment, which has revolutionised the way people save for retirement in the UK. It has helped introduce over 6 million employees into workplace savings schemes, to the point where over 33 million people are now members of an occupational pension. It’s a great start, but auto-enrolment alone is not enough to guarantee income security in later life.
“When it comes to saving for retirement, we now live in an era of personal responsibility, where individuals need to take control of their savings plans. The average contribution into a defined contribution pension is low at 4%, and this figure is actually falling as a result of low contribution levels to auto-enrolment pensions bringing down the average. Longer lives and uncertainty around the future generosity of state pension benefits means those relying solely on minimum workplace contributions risk falling through a trap door in later life. As a result, topping up private pensions, monitoring their performance, and adjusting contributions, will be vital if the next generation of retirees are to reach their retirement goals.”
|
