20 June 2019

‘New figures reveal risk of a ‘lost generation’ as contributions to new pensions 80% lower than amounts going in to older pensions’

2 min read

 
Helen Morrissey, Personal Finance Specialist

Helen Morrissey

Corporate PR Specialist – Long Term Savings

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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”.

About Royal London:

Royal London is the largest mutual life, pensions and investment company in the UK, with funds under management of £130 billion, 8.8 million policies in force and 4,046 employees. Figures quoted are as at June 2019.

For further information please contact:

Helen Morrissey, Corporate PR Specialist – Long Term Savings