Pension saving not seen as priority by private sector workers

A government report has revealed that nearly seven out of ten private sector workers  do not currently pay into a retirement scheme.

The number of ‘active’ pension savers fell to 8.2 million in 2012 compared to a record high of 12.2 million in 1967 according to a report from the Office for National Statistics.

The report revealed that lower income earners with an average salary of £20,000 were the most likely to have no provision.

The introduction of auto-enrolment last year is expected to encourage up to 10 million people to enrol into workplace pension schemes and increase the value of annual pension contributions by £11 billion by 2018.

However, it has been predicted that some lower paid workers will fail to benefit from auto-enrolment since the annual wage threshold to qualify for the scheme is currently £8,105.  This could disadvantage women and part-time workers who have traditionally been less well paid.

The report also revealed that a third of un-pensioned workers were aged 30 or under, raising concerns around whether younger workers were fully engaged with the concept of saving for retirement.

Tom McPhail, Head of Pensions at Hargreaves Lansdown said that just 63% of consumers had ‘bought into’ the idea of auto-enrolment;

“This figure shows that there is still a considerable amount of work to be done in convincing individuals of the benefit of saving for retirement.  Similarly 67% said they could stop worrying about their retirement once they had been auto-enroled.  The problem is that for most people the default auto-enrolment contributions will almost certainly not deliver a pension which will meet their expectations.”

  • Date posted:
  • Share:

View all articles

I would recommend him to everyone who needs an accountant and have done so with all my friends who have gone freelance

Stevie, Rushden

I have absolute trust in his professional advice

Michael, Towcester

has an uncanny skill of identifying exactly what you need and explaining it in a manner that is clear, concise and understandable

David, Langham

© 2020 Arcus Taxation Accountants is the trading name of Arcus Associates Ltd. Registered in England & Wales Company No. 05065405.

privacy / cookies

website cms powered by csb internet

01572 770552