'New data shows deepening pensions divide between public and private sector' - Steve Webb, Royal London
05 December 2017
The Pension Protection Fund today published its annual ‘Purple Book’ statistical analysis of private sector Defined Benefit pensions for 2017 (http://www.pensionprotectionfund.org.uk/Pages/ThePurpleBook.aspx ).
The report shows a further decline in the number of ‘active’ members of salary-related pension schemes in the private sector, down from 3.6m when the series started in 2006 to 1.3m in 2017. This includes a fall of around 0.2m in the last year. The report does not cover public sector pension schemes, but separate data from the Office for National Statistics shows that the number of public sector workers in salary-related pension schemes *rose* over the period 2006-2016 from 5.1 m to 5.7m. (See Table 3 of https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/pensionssavingsandinvestments/datasets/occupationalpensionschemessurvey - 2016 dataset).
Commenting, Steve Webb, Director of Policy, Royal London said:
‘These latest figures show a deepening divide between public and private sector workers when it comes to membership of salary-related pension schemes. Private sector employers are voting with their feet, closing schemes both to new workers and to existing scheme members. Membership of salary-related schemes in the private sector has slumped by nearly two thirds over little more than a decade. By contrast, the number of public sector workers building up salary-related rights has actually risen in the last decade. Although public sector pensions have been significantly reformed in recent years, on present trends public sector workers could soon be the only people in Britain able to build up salary-related pensions’.
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For further information please contact:
Steve Webb, Director of Policy, Royal London - firstname.lastname@example.org 07875 494184
About Royal London:
Royal London is the largest mutual life, pensions and investment company in the UK, with Group funds under management of £106 billion. Group businesses provide around 9 million policies and 3,449 employees. (Figures quoted are as at 30 June 2017).