Total pension savings increase on the back of auto-enrolment

Figures published recently by the Prudential have shown a significant increase in the total amount put away by UK workers towards their pension pots.

UK workers’ pension contributions last year amounted to more than £9.3 billion – a 17 per cent increase on the 2010/11 tax year and the second highest figure in the last 25 years.

Prudential has said that these figures ‘can be attributed in part to the initial success of auto-enrolment in encouraging more workers to save for their retirement’.

The firm added that auto-enrolment ‘immediately began to reverse a trend that had seen the total number of pension savers in the UK fall by 32 per cent, from 7.8 million to 5.3 million in the ten years to the end of the 2011/12 tax year. By April 2014 the figure had recovered to more than 6.4 million’.

The Prudential’s Stan Russell said: “After taking a long time to recover after the shock of the financial crisis, it appears that workers in the UK are starting to catch the pension savings bug again.

“Now, more than ever, it is important for those looking to secure a comfortable retirement to save as much as possible, as early as possible, into a pension.

“Fewer people are benefiting from final salary pensions and we are now faced with volatile financial markets, especially following the EU referendum result, so saving into a personal or workplace pension is something I would strongly encourage all workers to consider.”

The 2018 auto-enrolment deadline is fast approaching, and the Milsted Langdon Financial Services Team is ready to help to ensure you are prepared when it arrives.

We can assist you with all workplace pensions requirements and advise on cost management and enhanced payroll function.

Our free auto-enrolment pack includes a comprehensive guide to auto-enrolment compliance and a useful guide that will answer all your queries.

For more details, please contact us.

Link: Workers up their pensions saving by a fifth to top £9 billion a year.

Posted in News.