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

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”.