The number of people saving adequately for retirement has remained static this year, for the first time since auto-enrolment was introduced, research by Scottish Widows has revealed.
From the beginning of auto-enrolment in late 2012 through to 2015, the percentage of people saving adequately for retirement in to a defined contribution (DC) scheme rose from 45 per cent to 56 per cent.
However, in 2016 it remained at 56 per cent.
The research also revealed that people in their 40s were actually in a worse position in 2016 than they were in 2015, with just 53 per cent saving adequately for retirement. That was down from 57 per cent last year.
The number of non-savers in their 40s also increased to 19 per cent, up from 16 per cent in 2015.
Particularly worrying is the fact that savings levels among those in their 40s drop off at a time in life when retirement may be within 20 years. Robert CochranOverall, the percentage of people not saving at all for retirement fell slightly, from 19 per cent to 18 per cent.
The age at which people on average said they were able to afford to start saving for a pension rose from 28.9 years to 29.3 years.
Groups found not to be served well by auto-enrolment were women (just 24 per cent were saving adequately), the self-employed (24 per cent), and those working for small businesses (25 per cent).
Robert Cochran, retirement expert at Scottish Widows, said it was “disappointing” to see savings levels were “starting to plateau”.
Marlene Outrim, managing director of UNIQ Family Wealth, said people needed to be realistic about their retirement expectations.
She added: “If you want to retire on a reasonable income at 60 or 65, then you have to save. There is no other way around it.”
james.fernyhough@ft.com
