Responding to data showing total membership of occupational pension schemes in the UK hit 45.6m in 2018, Helen Morrissey, pension specialist at Royal London, said:
“Today’s figures show that thanks to auto-enrolment membership of UK occupational pension schemes has hit an all-time high. But almost all of the growth is in people with an average of 5% of pay going in to their pension pot. This compares with those in old style final salary pensions who are getting 25% in total contributions. If this disparity is not addressed, we risk a lost generation of people who missed out on final salary pensions but are simply not putting enough into their new style pension. Automatic enrolment was a great start, but this is simply the end of the beginning. Rather than government and industry pat itself on the back for a job well done, the drive to increase contributions to realistic levels needs to move forward in earnest”.
Notes to Editors
About Royal London:
Royal London is the largest mutual life insurance, pensions and investment company in the UK, with assets under management of £138.9 billion, 8.6 million policies in force and 4,126 employees. Figures quoted are as at 31 December 2019.