With all of us living for longer, we need to save more for our future. Workplace pensions were introduced in 2012 as a way of making it easier to save for retirement, with automatic enrolment into these pension schemes encouraging employees to save. New data from the Office for National Statistics (ONS) has shown that workplace pensions and automatic enrolment have led to a surge in defined contribution pensions. In fact, pension participation in the UK is now at a record high as a result. Nearly three-quarters of all employees now contribute to a workplace pension, with 73% of all workers members of these pension schemes. Compared to 2012 when only 47% of employees contributed to a pension arrangement, this is a big increase and suggests automatic enrolment has been a successful initiative, in terms of participation at least.
Pension participation at record high
This 760 word blog post looks at the latest ONS figures on workplace pension participation and contribution levels, along with a quote from a commentator at Aviva warning that minimum pension contribution levels need to rise higher to ensure people save enough for retirement. Written on 8th May 2018.