“Despite the uncertainty facing millions of savers in 2020/21, the majority are stuck with workplace pensions,” analysts say
The number of people saving on workplace pension plans remains stable during lockdown, new data reveals.
There was only a small drop-off for the percentage of workers who were forced out of the workplace scheme each month.
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This figure fell from 0.75% in 2019/20 to 0.63% the following year.
Contributions were also stable as the majority of employees contributed at least 4.5% of their revenue to retirement.
Meanwhile, many of the people most affected by the pandemic, for example, many of the self-employed, are not eligible for auto-registration.
Automatic registration was introduced in 2012 to address the decline in private pension savings and save long term savings.
There have been concerns that the recession caused by the coronavirus pandemic is harmful to people’s retirement plans.
“Despite the uncertainty facing millions of savers in 2020/21, the majority are stuck with workplace pensions, and tax relief and employer contributions in the process “We’ve benefited in line with this,” said Tom Selby, head of retirement policy at AJ Bell.
“Overall, many still have too few to enjoy a comfortable retirement, but the fact that autoregistration is confirmed during the most intense 12-month period in living memory is extremely encouraging. You can do it.”
However, according to Selby, there could be more challenges.
“The UK economy has been compiled primarily by hundreds of millions of pounds of national support provided through the Furlough scheme. Once this support is withdrawn, policymakers will be able to stake the impact of knock-ons on unemployment and retirement savings. You need to see eagle in both of them.”
Moreover, millions of people, including low-paid and self-employed people who are not part of auto-registration, have been saved little or no for their financial future.
“Ensuring as many people as possible save as possible is the importance of saving in the short and long term and the potential consequences of not doing so is an absolute priority for governments, regulators and the wider pension industry. must be.”
