Pensions - Articles - Gaping hole still left in pensions

 “Pension freedoms have stolen the limelight since they were introduced in April 2015, yet behind the scenes auto enrolment has been doing a lot of heavy lifting for savers in the private sector. The landmark workplace initiative has seen year on year success, with a 10% increase in the number of people enrolled on occupational pension schemes year on year.

 “However, despite auto enrolment making significant inroads, the mandated contribution levels of 2% of pensionable salary (1% per employer and employee respectively) will leave a gaping hole in people’s pension pots when they enter retirement.

 We need to make sure that people are saving enough, and also saving in the right way. It is crucial that people adjust their risk appetite dependant on what stage of their retirement journey they’re at, to ensure they have the best chance of enjoying the lifestyle they want in retirement.”