Omnium Employee Benefits

Most savers on track for retirement

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.”

We can help

We can help you put together a pension scheme to benefit your employees, or provide financial clinics to your team to help ensure that they can plan adequately for their future. Give us a call today on 01483 205890, or email on: [email protected]

Back to News Index

« Read Previous

Read Next »