Pension Savings At Record High

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Britain now has the highest level of pension saving since records began in 1997, with pension membership rising across all age groups, according to new data published today by the Office for National Statistics.

The figures underline the success of automatic enrolment - where workers are automatically put into a pension scheme - in rebuilding Britain's saving culture. To date, the scheme has seen more than five million workers brought into a pension scheme, saving more or saving for the first time. 

Today's Annual Survey of Hours and Earnings statistics, which reflect the picture in 2014, show:

  • 59 per cent of all workers are active members of a pension scheme - up from 47 per cent in 2010;
  • 49 per cent of private sector employees are active members of a pension scheme - up from 32 per cent in 2012;
  • pension membership has risen across all age groups, the largest increase being in the 22-29 age group, up to 53 per cent from 36 per cent in 2013. 
  • pension membership has increased for every earnings band in the private sector for full-time employees. 

 

Liberal Democrat Minister for Pensions, Steve Webb MP, said:

"The rise in the proportion of people saying for retirement over the past three years is stunning. Pension saving is now at its highest level since records began.

"This is due in no small part to the success of automatic enrolment which is changing the culture of pension saving in Britain. Millions of people are now saving into a workplace pension, allowing them to build a decent nest egg to enjoy in their retirement, on top of a reinvigorated new State Pension."

Across the country, all regions saw at least a 10 percentage point increase in pensions membership amongst private sector workers. 

Membership was highest in the London area (56 per cent), and the North East saw the largest increase in private pension membership up from 33 per cent in 2013 to 51 per cent.

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Source: Annual Survey of Hours and Earnings, Office of National Statistics

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