Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • Sections
  • News

UK workplace pension saving hits new heights

Open-access content Monday 22nd June 2020
Authors
CHRIS SEEKINGS
Pension-iStock-1170264041.jpg
Image credit: iStock

The number of UK employees saving for retirement through a workplace pension has skyrocketed since automatic enrolment came into effect eight years ago.

That is according to recent government data, which shows that 88% of eligible employees – 19.2 million people – are now saving through a workplace pension, up from 55% in 2012.

The total annual amount saved stood at £98.4bn in 2019, which is an increase of £5.3bn from the previous year, with all age groups now equally likely to be saving for the future.

Moreover, the data shows that participation among non-eligible employees – those under 22, over the state pension age, or earning below £10,000 a year – increased from 16% in 2012/13 to 32% in 2018/19. 

“The fact a third of people who are not eligible to be auto-joined are still saving shows that pensions are becoming a social norm within society,” said Nathan Long, interim head of policy at Hargreaves Lansdown.

“Age now plays almost no part in your likelihood to be putting money aside for your future, which is a huge leap forward.”

The government data also reveals that 41% of the total amount saved each year through workplace pensions goes into public sector schemes, with 59% going to private sector schemes.

However, the figures show that those earning £10k to £20k have the lowest participation, with only 79% of eligible workers saving at this level, suggesting that the cost of saving plays a big part of non-participation.

In addition, pension participation among the self-employed continues to fall, declining from 21% in 2009/10 to 14% in 2018/19.

Long said that the impact of COVID-19 is also a potential cause for concern. “Quite how many of us will stick with our pension savings if friends and colleagues are losing their jobs is uncertain,” he continued.

“The self-employed continue to be precariously placed with just a handful choosing to save into a pension, showing the existing incentives just don’t resonate. 

“The government will also be acutely aware that 41% of all pension contributions go to public sector employees that represent less than a fifth of all workers.”
 

You may also be interested in...

web_1_pension_shutterstock_264841286.jpg

Pensions Regulator sets out ground rules for superfund landscape

The Pensions Regulator is calling for “stringent” standards and a robust regulatory framework for defined benefit (DB) pension “superfunds” ahead of forthcoming legislation.
Wednesday 24th June 2020
Open-access content
climate_shutterstock-1372578665_v2-lighter.png

Campaign launched to shift UK's £3trn pension pot into sustainable investments

A new campaign has been launched today to help transfer the UK's £3trn pension pot into sustainable investments by giving millions of savers more voice and choice in how their money is invested.
Tuesday 30th June 2020
Open-access content
iStock-1098111742.jpg

Workplace pension income rises by more than a third

Income from workplace pensions in the UK has risen by more than third in just 10 years, analysis by financial services firm Equiniti has revealed.
Wednesday 10th June 2020
Open-access content
iStock-870901960.jpg

Ransomware attacks soar 25% during COVID-19 crisis

Ransomware cyber attacks increased by 25% worldwide in the first quarter of this year compared to the final three months of 2019, based on incidents reported to Beazley Breach Response (BBR) Services.
Tuesday 9th June 2020
Open-access content
Rishi_Sunak_©UK-parliament-.jpg

UK employers to be reimbursed pension contributions

UK employers will be reimbursed for pension contributions this year under a new £2bn 'Kickstart' scheme unveiled in chancellor Rishi Sunak's summer economic update today.
Wednesday 8th July 2020
Open-access content
web_crash_istock-503640774.png

DB pensions to rely on investments despite COVID-19 turmoil

Most UK defined benefit (DB) pension schemes will rely heavily on investment returns, rather than seek additional cash from sponsors, to achieve their funding targets during the coronavirus crisis.
Monday 1st June 2020
Open-access content

Latest from Pensions

ers

By halves

Reducing the pensions gap between men and women is a work in progress – and there’s still a long way to go, with women retiring on 50% less than men, says Alexandra Miles
Thursday 2nd March 2023
Open-access content
rdth

Make My Money Matter's Tony Burdon on the practical power of sustainable pensions

Years working in international development showed Tony Burdon, head of Make My Money Matter, that sustainable pensions can harness trillions of pounds to build a better world – at a scale governments and charities can’t. He talks to Travis Elsum
Wednesday 1st March 2023
Open-access content
KV

Liability-driven investments: new landscape

What now for liability-driven investments, after last year’s crash in the market? Pensions experts Rakesh Girdharlal and Moiz Khan say it should lead to a more balanced approach
Wednesday 1st February 2023
Open-access content

Latest from News

tf

New online forum 'IFoA communities' – now live

IFoA communities is your new online digital community. Here’s how to get started on the platform
Thursday 2nd March 2023
Open-access content
uh

Climate risk course sees new growth

In April, the Climate Risk and Sustainability course will be one year old. During its first year, we welcomed 155 participants and awarded 148 certificates. Members from more than 19 countries came together at the seminars to discuss and share what they had learnt.
Wednesday 1st March 2023
Open-access content
uh

Actuarial Profession Standard Z1: have your say

The IFoA is consulting on proposals to introduce a revised Actuarial Profession Standard (APS) Z1 on ‘Duties and responsibilities of members undertaking work in relation to UK trust-based pre-paid funeral plans’. APS Z1 sets out specific ethical and professional obligations that apply, in addition to the Actuaries’ Code, for members providing advice relating to funeral plan trusts.
Wednesday 1st March 2023
Open-access content

Latest from CHRIS SEEKINGS

web_1_Covid-patient-in-hospital-bed-in-quarantine_credit_Halfpoint_shutterstock_1668007552.png

England and Wales record worst rise in deaths rates since WWII

The last two years have seen death rates in England and Wales rise above the preceding five-year average for the first time since WWII, the Continuous Mortality Investigation (CMI) has found.
Wednesday 12th January 2022
Open-access content
Jørgen Randers: An end to growth?

Jørgen Randers: An end to growth?

Professor Jørgen Randers talks to Chris Seekings almost 50 years after the publication of his report The Limits to Growth, and outlines what we can expect for the world during the next half-century
Wednesday 1st December 2021
Open-access content
web-p12-14-Dominic-Christian-Interview--globe-jb-227-background.jpg

Dominic Christian: All for one

Dominic Christian talks to Chris Seekings and Roulion Wang about how the insurance industry must come together to develop innovative solutions to the climate crisis
Wednesday 6th October 2021
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Pricing Trading Manager - Contract

£700 - £1000 per day
Reference
148579

Head of Financial Risk

Flexible / hybrid working with minimum 2 days p/w office-based
£ excellent package
Reference
148578

Insurance Risk Leader

Flexible / hybrid with 2 days p/w office-based
£ to attract the best
Reference
148577
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ