“We’re beginning to see some really positive signs that auto-enrolment is working, and slowly beginning to change the UK workers’ savings habits, particularly for those in their 20s. Since 2012, 6.8 million workers have been auto-enrolled into their employer’s pension scheme, and only 9% opted-out.
“However, the not so good news is that too many people are paying the minimum contributions of just 1% of earnings matched by a 1% employer contribution. Even when the minimum contribution goes up to a total of 8% of earnings in April 2019, this is unlikely to be enough for an adequate income in retirement.
“Government statistics show that 1 in 5 workers are now in non-standard working arrangements. Self-employment, zero hours contracts, and the gig-economy are increasingly common and often associated with low wages and people taking on multiple jobs to get by. These workers fall outside auto-enrolment, meaning they won’t benefit from employer contributions and risk being left behind if more isn’t done to incentivise them to save for retirement.”
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