Employees urged to double pension savings
Millions of employees are facing having only a ‘basic’ level of income at retirement because they are not saving enough. The majority (57%) of defined contribution savers say they are paying in the 4% minimum contribution set by the government, according to workplace pension provider The People’s Pension.
Experts predict that auto-enrolment contributions need to be double what they are now for society to avoid a cost of living crisis in the future.The introduction of pension auto-enrolment in 2012 has been a significant step towards financial security for many. According to the data however, just 7% of people have realised that the default rate of 8% will only deliver a basic retirement – an annual income of £10,900-£20,800.
Obviously with the cost of living crisis, people are more concerned about paying their bills today than saving for tomorrow, but it is felt that the Government needs to act to take forward its 2017 review of automatic enrolment.
Pensions are just one of a range of employer benefits which can be considered to attract and retain employees. 121 HR Solutions can help employers evaluate their company benefits and can be contacted on 0800 9995 121.