Pension enrolment up, but adequacy still needs addressing urgently

By staff writers
September 26, 2016

New statistics show a record high membership in occupational pensions in Britain since the data was first published in 2008. But that is only part of the story, say observers and analysts.

Commenting on new figures published on Thursday 22 September 2016 by the Office for National Statistics (ONS), Frances O'Grady. General Secretary of the Trades Union Congress said: “Automatic enrolment has made a good start by bringing millions more people into workplace pensions.

“But it is a job half done. Too many women and lower-income workers still miss out, for example.

“We should be very concerned about plunging pension contributions. Millions who are doing the right thing by paying into a pension remain at risk of falling into hardship in old age.

“Next year’s review of automatic enrolment must be used by the government to provide a long-term plan for how workplace pensions will provide a decent retirement income for low and middle-earners,” she added. 

ONS data shows that, for private sector defined contribution schemes (DC), the average contribution rate in 2010 was 2.7 per cent for members and 6.2 per cent for employers.

In 2015 the average total contribution rate for DC schemes was 4.0 per cent of pensionable earnings: 1.5 per cent for members and 2.5 per cent for employers.

* The full ONS release can be found here

* More from the TUC here

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