Legal News
Private Sector Employees Fail To Save For Pensions (3 January 2012)
Date: 03/01/2012
The number of private sector employees saving for their pensions has fallen to its lowest level in over a decade, figures from the Department of Work and Pensions have shown. Only 38 per cent of employees are saving for their retirement due to pressures on household budgets. The fall in the number of employees saving for their pension increases the likelihood of today’s young employees having to work into their old age.
The Department of Work and Pensions has revealed that 11.6 million working age individuals out of a possible 30.4 million are currently saving for their retirement. The figures have shown a steady fall in pension saving over the past decade. The number of employees saving for retirement with the aid of a private pension in 1999 was 46 per cent. Today, the figure stands at 38 per cent. Pension saving amongst working age men fell from 52 per cent in 1999 to 39 per cent in 2011. Among employees between 20 and 39 years of age, pension saving fell from 43 per cent in 1999 to 31 per cent in 2011. Ministers have described the figures as “alarming”.
From October, all employees aged over 22 years and under pensionable age working for large businesses and taking home an income exceeding £7,475 per year will be automatically enrolled in a pension scheme. However, employees will be granted the chance to opt-out, should they wish to do so. Industry experts have attributed the fall in the numbers saving for their retirement on the state of the economy.
Duncan Lewis’ employment law solicitors can use their knowledge and skills to solve pension disputes.