Retirement Income  

Savers face retiring on less than living wage

According to workplace pension data released by the Department for Work and Pensions on June 5, pension contributions into workplace schemes increased 2.2 per cent last year, the first annual rise since 2012.

Total pension contributions per individual increased from £4,716 in 2017 to reach £4,822 in 2018.

But the data also showed the total amount saved in workplace pensions in 2018 was £90.4bn, up 8.4 per cent from the £83.4bn saved in 2017, meaning there are more people saving smaller amounts.

Aviva stated the small uptick from 2017 to 2018 (of £107 per eligible saver) was likely to be a reflection of the increase in minimum saving requirements from April 2018, from 2 per cent to 5 per cent of pensionable earnings.

This increased to 8 per cent of pensionable earnings in April this year, with the employee paying 5 per cent and the employer 3 per cent.

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