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Commenting on record levels of workplace pension membership, Steve Webb, Director of Policy at Royal London, said: |
“The record levels of workplace pension membership in 2015 are hugely encouraging, and the continuation of automatic enrolment since then means that the numbers will continue to surge. But the sting in the tail is the very low rates of contribution into many of these pension plans. "The ONS finding that the average contribution into a private sector occupational DC pension scheme is just 4% is ‘a shocking figure’. A combined contribution rate of three or four times this size is likely to be needed for most workers to be able to secure an adequate income for a comfortable retirement It is quite clear that mass membership of pension schemes through automatic enrolment is just the start of a very long journey.” |
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