The proportion of employees saving money into a workplace pension scheme is at its highest level for 17 years, driven by a huge increase in the number of people in their 20s saving for retirement.
In 2013, half of all employees saved into their company pension; this grew to 59% in 2014, according to figures from the Office for National Statistics. Although the increase was across age groups, the biggest leap was among the 22- to 29-year-olds, with 53% saving into a workplace pension last year compared to 36% in 2013.
The same workplaces which don’t give you the same job for life?
The increase, which reverses more than a decade of falling workplace pension scheme participation, is largely down to the government’s automatic pension enrolment programme.
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Auto enrolment was introduced at the end of 2012 to compel employers to enrol all workers aged between 22 and the state pension age and who earn more than £8,000 a year into a workplace pension scheme.
“Auto-enrolment is a huge success and has reversed the decline in the numbers saving into pensions,” said the TUC’s head of campaigns, Nigel Stanley. “Like the minimum wage, compulsory employer pension contributions have gone from controversial to consensus in just a few years.”
They’re laughing. It’s going into their own soon-to-be-drawn pots.
He added that under the current rules contribution levels were not enough to give people “a decent retirement income”.
“Once every employer is covered by auto-enrolment we need to start raising minimum contribution levels and make sure we include the part-time women workers [who are] excluded from saving each time this government has raised the earnings level that triggers auto-enrolment,” he said.
When auto-enrolment is rolled out completely in 2018 the minimum contribution into a scheme will be 8% of an employee’s qualifying earnings, of which at least 3% must come from the employer. Currently employees only have to pay in 1% of their earnings, with their employer matching this with a further 1%.
I’m sure 1% stands up well against some of the interest on their student loan debt.
The ONS statistics showed that almost half the employer contributions made in 2014 were under 4%, while a third of employees contributed less than 2% of their salary.
While the proportion of people saving in a pension through work grew overall, those who are doing it through a “gold-plated” final salary scheme fell to its lowest level ever.
They are Bigfoot. You hear about them, but you never confirm their existence.
For the first time since ONS records began defined benefit (final salary) pension schemes represented less than half of total workplace pension membership.
While the increase in pension participation has been largely driven by auto-enrolment, there is also evidence that those who do not qualify are saving more.
There was a surprising increase in participation among 16-21 year olds, who don’t qualify for auto-enrolment. The proportion saving in final salary schemes increased from 3.5% to 4.4% between 2013 and 2014 and the number in defined contribution, or stockmarket linked, schemes grew from 4% to 4.5%.
What a pity none of it will be there by the time you retire, you utter morons.
I know what their rationale is. They hope to retire early like their Boomer parents.
Top comment says;
Don’t worry theyll opt out once the see the pensions wiped out by the next banking collapse. Pensions are a form of gambling on the stock market. The only winners are the traders. Retire at the wrong time of the boom bust cycle and you’re screwed. You are literally better to to keep saving the cash on deposit.
Giving the people who rob you everyday extra money that you could use to pay down your debt to them?