Savers call for higher pension contributions

Concerns over pensions adequacy remain a priority for some people, according to a survey from the Pensions and Lifetime Savings Association (PLSA). Around half (51%) of non-retired respondents believe workplace pension contributions should increase and more than two-thirds (71%) of savers believe that employers could potentially contribute more to their pensions. The findings, published ahead of the PLSA's Annual Conference this week in Liverpool, highlight the choices people are making to cope with day-to-day costs, alongside concerns about pension savings, their investment options and the future of retirement security. The proportion of UK savers reporting being financially worse off than they were 12 months ago fell from 44% to 34% in the last year. Some 41% of households said they had to make some cutbacks, but reduction in pension contributions was the thing they were least likely to do. Although 54% of people said they prefered their pension savings to support UK companies rather than companies overseas, 65% believe pension providers should continue to invest for the best possible returns. Around half (52%) of non-retired respondents believe that a full new state pension of £11,502 will not provide enough to avoid poverty in retirement and 73% said the triple lock should be maintained. Nigel Peaple, chief policy counsel at the PLSA said: “Although many people are still feeling the effects of the rising cost of living, there are signs the peak of the crisis may have passed for certain segments of the population. “Despite ongoing concerns about pension adequacy, over 80% of people believe their employer should contribute at least as much as, or more than, the employee.” He said it’s essential that the industry and government act to ensure people have enough savings for a secure retirement. “This means maintaining the value of the state pension and gradually increasing minimum AE contributions from 8% to 12% over the next decade. In doing so, contributions should be evenly split between employers and employees, helping to ease the concerns of UK savers.” The research was conducted on behalf of the PLSA by Yonder Consulting in September with an overall sample size of 2,100, of which 1,588 were non-retired adults.

Savers call for higher pension contributions

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