Thanks in part to auto-enrolment, saving into a pension is gradually becoming the norm for company employees – but there’s still a long way to go to make sure everyone understands the benefits.
According to figures from the Office for National Statistics Wealth and Assets Survey 2016-17, 44% of employees said that they believe their employer’s pension is the safest way to save for retirement. And, 63% of eligible employees are aware that they have been automatically enrolled into a workplace pension.
While that’s good news for the nation’s retirement, the figures show that there’s still work to be done to make sure that everyone is planning for their long-term future. Of the eligible employees who said they were not enrolled in a pension scheme, 91% were actually part of a scheme! That suggests both employers and pension providers could be doing more to make sure that everyone understands their pension arrangements.
Pensions are also less popular with the self-employed, with 42% saying that investing in property would be the safest way to save for retirement. Recent research by the association of Independent Professionals and the Self-Employed showed that only 31% of self-employed people currently pay into a pension.
Pension savings are an essential part of making sure you are prepared for a comfortable financial future, whatever your working arrangements. If you would like to discuss your retirement planning strategy, please talk to your Brunsdon Financial Adviser.
Sources:
https://www.ipse.co.uk/resource/how-to-solve-the-self-employed-pensions-crisis-pdf.html
Please note that this information is for guidance only and does not constitute personal advice. The FCA does not regulate some elements of Automatic Enrolment. Brunsdon is not responsible for the content of external web sites.
