Archive for September, 2015

Pension Savings – Have You Got The Habit?

Posted on: September 18th, 2015 by nwp_admin No Comments

There are signs the UK could finally be getting the savings habit with the amount of money being salted away into pensions jumping from £11bn to £15bn per year.

While the latest figures from the Department of Work and Pensions (DWP) show that the bulk of the increase has come from auto enrollment, officials say there are signs of a strong appetite for pension saving amongst employees.

By the time the roll-out is complete, around nine million workers will be either saving into a workplace pension for the first time, or saving more. And, so far, 90% of workers are staying in their pension after being enrolled.

Workers are eligible if they are at least 22 years old and under state pension age, earning over £10,000 a year and work, or usually work, in the UK.

However, pension analysts have highlighted that the scheme is starting with contributions too small to offer a decent level of replacement income in retirement. The minimum contribution is currently set at 1%, while some advisors say a longer-term goal of 12 – 15% is needed to ensure people have adequate income.