Millions of workers do not pay into workplace pension, says watchdog chief
Experts say average contribution rates are “woefully inadequate” for what people are likely to need for a comfortable retirement.
A third of workers are not saving towards their retirement, according to Financial Conduct Authority chief executive Andrew Bailey.
It follows research which has been carried out by the FCA which suggests around 15 million people do not have employer pensions.
In September the Office for National Statistics (ONS) revealed total membership of occupational pension schemes in the UK was 39.2 million in 2016/17.
This was the highest level recorded by the survey and a 17% jump compared with 2015, when the figure was 33.5 million.
Pensions experts welcomed the numbers, but warned that average contribution rates are “woefully inadequate” for what people are likely to need for a decent income in retirement.
Mr Bailey was writing in the Daily Mirror ahead of the publication of a report into the nation’s personal finances.
He said: “Saving for retirement is very important but it isn’t easy for people who have to make ends meet today.
“Around 15 million adults who are not retired are not paying into a pension.
“While the state pension is a hugely important part of retirement provision…for many people it is not enough to maintain living standards.”