According to the Scottish Widows’ annual retirement report, almost three in five people in the UK believe they are putting enough away for a comfortable retirement.
The report found that of, 5,036 adults surveyed, 59% are on course to continue their current standard of living upon retirement, which is up from 55% in 2018.
The research indicates that the recent increase to workplace pension minimum contributions via auto-enrolment have been welcomed by employees.
As of April 2019, minimum contributions for workers over the age of 22, earning more than £10,000 a year, rose to 5%, while minimum employer contributions were increased to 3%.
Scottish Widows believes that, to fund what it considers a comfortable retirement, an individual should make contributions of at least 12% of their income.
However, although these statistics are relatively positive, 22% of respondents felt that they would never be able to afford to retire, a finding that has prompted Scottish Widows to call for further action.
Peter Glancy, Head of Policy at Scottish Widows, said:
“With no further step-ups in auto-enrolment contributions planned, bold action must be taken to ensure no-one has to face the spectre of poverty in their later years.
“While the past 15 years have proved that things have changed for the better, auto-enrolment alone won’t avert a pension crisis in the UK.
Government and industry need to take the step together.”
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