Ten years of Automatic Enrolment achieves over £114bn pension savings
Responding to figures from the department for work and pensions, revealing that in the ten years since the launch of Automatic Enrolment (AE), employees across the UK had saved £114.6 billion into their pensions, Royal London pension’s expert Clare Moffat said:
"While the UK pension savings landscape has hugely benefitted from AE, the system needs to address inequalities that mean certain groups, in particular women, face limitations on their ability to save for retirement.
"Significantly fewer women than men are likely to meet the qualifying criteria for AE. Women also face a number of challenges which can limit their ability to save for retirement. These include an unequal distribution of caring responsibilities, the menopause, which forces thousands of women to reduce their hours or leave work altogether and greater likelihood of working part time. Of employed women in the UK, 38% are working in part-time roles, meaning women are less likely to meet the £10,000 eligibility criteria to be automatically enrolled into their workplace pension. Reforms to lower the age from 22 to 18 and removing the lower earnings threshold will also significantly increase the number of people saving in a workplace scheme, and substantially increase the amount being paid in for lower earners.
"While now might not be the right time to implement a rise in contribution levels from the current rate at 8 per cent of earnings, we should at least start planning how contribution levels might rise in the future, to give employers and employees sufficient time to plan for the changes."
For further information please contact:
Neil Cameron, PR Manager
- Email: firstname.lastname@example.org
- Mob: 07919 171969
About Royal London
Royal London is the largest mutual life, pensions and investment company in the UK, with assets under management of £147 billion, 8.7 million policies in force and 4,232 employees. Figures quoted are as at 31 December 2022.
Learn more at royallondon.com
More press releases you might like
Desperately seeking retirement benefits
According to new research from life and pensions mutual, Royal London, company pension arrangements are more of a priority for those applying for a new job than future career progression.
Over 55s and retirement: experientialism or materialism?
The key to happiness in retirement: Over 55s value experiences over material possessions. New research from Royal London reveals that 72% of those aged 55+ favour holidays, days out and hobbies over material possessions.
Women going through the menopause could face £126k retirement shortfall
The launch of a new report, 'Bridging the Gender Pension Gap' looks at the unique retirement planning challenges women face as well as the contrasting attitudes and savings behaviour of women and men.
Finding a lost pension could make you tens of thousands of pounds better off
Royal London’s consumer finance specialist, Sarah Pennells, comments on National Pension Tracing Day (30 October), an initiative designed to make people aware of any pensions they might have forgotten about.