28 September 2018

Government must bring self-employed into auto-enrolment without delay

3 min read

 
Helen Morrissey, Personal Finance Specialist

Helen Morrissey

Personal Finance Specialist

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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."

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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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