06 August 2018

Occupational Pensions Scheme Survey shows average DC contributions continue to drop

5 min read

 
Helen Morrissey, Personal Finance Specialist

Helen Morrissey

Personal Finance Specialist

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Commenting on the publication of the Occupational Pension Schemes Survey: UK 2017 Royal London Head of Business Development Clare Moffat said:

The good news from this survey is that total membership of occupational pension schemes has increased from 39.2 million in 2016 to 41.1 million in 2017. This continues to show the impact of the workplace pension reforms which means many more employees will now have a pension in retirement. The bad news is that the average contribution rate in private sector defined contribution schemes has reduced again from 4.2% to 3.4%. The increase in the minimum contribution for auto enrolment will help but as it currently stands these increases will still not be enough to deliver a decent retirement income for the majority of people. People need to start thinking about the type of retirement they want to have and how much they need to save to achieve it. Small regular increases can have a large impact on the quality of life in retirement.

-ENDS-

For further information please contact:

Helen Morrissey, Personal Finance Specialist

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.

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