It’s been almost 10 years since auto-enrollment was launched and in that time an additional 10.6m workers have signed up for a workplace pension scheme, saving an additional £28.5bn sterling per year.
Despite this huge success, there remains the question of whether the average self-membership member is saving enough for the retirement they want. Our new research shows that most savers and employers are anchored to the 8% minimum rate, with most mistakenly believing they are on track to achieve a ‘moderate’ or ‘comfortable’ standard of living in retirement .
There is a growing consensus in the pension industry that increased contributions are needed to improve the retirement prospects of millions of people. But with so many questions about how this could or should be done, we are asking the government to set out plans for a review of the minimum contributions required for automatic enrollment.
While people in the UK, including Dorset, are rightly worried about the rising cost of living, a very real problem is developing for a significant proportion of the population in retirement and it is crucial that the government come up with a plan to tackle this.
Director of Policy at B&CE, provider of The People’s Pension