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
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • September 2013
09

ONS: fall in active UK pension members continues

Open-access content Friday 27th September 2013

The number of people actively paying into UK occupational pension schemes fell by around 400,000 last year, continuing a declining trend, according to the Office for National Statistics.

In its annual Occupational Pension Schemes Survey, published yesterday, the ONS found there was a total of 27.6 million occupational scheme members, of whom 7.8 million were actively contributing, 9.5 million receiving pension payments while the remaining 10.2 million had preserved pension entitlements.

The number of active members was down on 2011 when 8.2 million people were paying in to schemes. Back in 1967 the number of active members totalled 12.2 million.

Of the 7.8 million active members, 5.1 million were in public sector schemes, while 2.7 million were in private sector schemes.

Commenting on the figures, Malcolm McLean of actuarial consultants Barnett Waddingham said they indicated a 'growing imbalance' between the number of people paying into schemes and those drawing pensions or with retained rights.

'This will continue to put pressure on sponsoring employers' ability to adequately fund their schemes and could lead to them seeking cheaper alternatives going forward,' he said.

McLean added that the gap between public and private sector pension provision remained 'disappointingly large', although something that could be helped by auto-enrolment, which was launched a year ago.

'The contrast between the two sectors should not be used to justify draconian measures to deplete provision in the public sector, but instead to take all necessary steps to encourage and sustain more meaningful pensions in the private sector. 

'A race to the bottom will not help anyone and will certainly not be in the best interests of our ageing population, nor in the future best interests of the country.'

For private sector defined benefit schemes, the average contribution rate in 2012 was 4.9% for employees and 15.2% for employers, the ONS found. For private sector defined contribution schemes, average contribution rates were 3.1% for employees and 6.6% for employers.


This article appeared in our September 2013 issue of The Actuary.
Click here to view this issue
Filed in:
09
Topics:
Pensions

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Capital Analyst- no capital experience required

London (Central)
£Competitive
Reference
121218

Pricing Analyst looking to broaden experience?

London (Central)
Up to £55,000
Reference
121217

Head of Pricing - International

BMD excellent
Reference
121202
See all jobs »
 
 

Today's top reads

 
 

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

© 2021 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200