More UK employees are savings for their retirement than ever since the launch of Automatic Enrolment six years ago. However, research from the Office for National Statistics (ONS) has revealed that many people contributing to their workplace scheme don't actually realise they're saving for retirement.
Auto Enrolment took effect in 2012, when it was made complusory for employers to enrol their staff into a workplace pension scheme and rolled out phases. Latest figures suggest that over nine million invidiuals are now newly saving or saving more for retirement.
37% of those surveyed by ONS didn't realise they were contributing to their workplace pension scheme and could opt out. A risk which might be greater when the minimum contribution level for employees increases from 3% to 5% in April 2019.
So, do you know if you are saving into a workplace pension and if you are, are you saving enough? The industry estimates for a comfortable retirement range between £23,000 and £27,000 a year. So a 25 year old employee earning £30,000 a year would need to save just under £300 a month to achieve the lower figure.
Simply, the more you save and the earlier you start saving the better position you are likely to be in (subject to investment performance)
If you're concerned about your pension planning, always get advice.
Please give us a call and we'll help you get a clear picture and straightforward plan to put you on track.