Government must bring self-employed into auto-enrolment without delay - Royal London
28 September 2018
Commenting on figures issued by Office of National Statistics on contribution rates to personal pensions Royal London Pensions Specialist Helen Morrissey said:
“Today’s statistics show an interesting pattern in the average contribution rates based on employment status. Over the past five years average contribution rates for employees has fallen by approximately one third from £3,490 a year to £2,310. This demonstrates that many employees are opting to stick at auto-enrolment minimum contribution rate levels. If this continues people risk leaving themselves short of money in retirement and government must look at how these minimums can be increased.
“Looking at the self-employed, while average annual contributions increased by approximately 20% from £3,760 per year in 2012-13 to £4,490 in 2016-17, it has fallen from last year’s peak of £5,310. We would urge government to do all it can to help self-employed people build a sustainable pension by bringing them into the auto-enrolment space without delay.”
Notes to editors
Personal pensions: estimated number of individuals contributing, and average contribution by status can be found here:
For further information please contact:
Helen Morrissey, Corporate PR Specialist – Long Term Savings
email@example.com 07919 170 712
About Royal London:
Royal London is the largest mutual life, pensions and investment company in the UK, with funds under management of £117 billion, 8.8 million policies in force and 3,745 employees. Figures quoted are as at 30 June.
At Royal London, we’re proud to champion the value of impartial advice. We believe it plays a crucial role in connecting people with the products that are right for them – and is key to delivering better outcomes and experiences for our customers. At the same time, it helps to build trust in our products and services.
Royal London works alongside advisers not in competition with them. That’s why we’ve made some key commitments to the intermediary market. You’ll find more detail on our commitment to advisers at http://adviser.royallondon.com/campaigns/our-commitments/