Recent research has shown that 55% of people are not saving enough for retirement.
Although automatic enrolment should bring more young people into pension savings, there is still the challenge of educating people as to how much to contribute to ensure there is enough money in the pot for an adequate retirement income. A report published by Scottish Widows has examined the nation’s attitudes and behaviour towards pensions saving and found that retirement savings have hit an all-time low. The report says that the average British worker anticipates stopping work around age 66 and is looking for retirement income of £25,000 a year which would require savings of £1,000 a month from the age of 30. Someone earning £25,000 and saving at Scottish Widow’s benchmark 12% level would be likely to see a fall of over 50% in their income after retirement. The report points out that starting to save at 20 rather than 30 could add 39% to retirement income. Deferring retirement from 65 to 70 could add 43% and increasing contributions by 3% of earnings every five years could add 68%. Only 45% are making enough provision for their retirement, down from 46% in 2012. The fall in the Pensions Index is a result of fewer people who are not relying mainly on a defined contribution pension saving at the benchmark 12% level. 20% are saving nothing in 2013, compared with 22% in 2012. The gender gap between men and women is 9%, up from 7% last year. 49% of men are currently saving adequately, compared to 40% of women. The age gap is similar to last year. 53% of over-50s are preparing adequately, compared with 42% of those between 30 and 50. More women over 50 are saving adequately this year than last year, but fewer men. This finding is reversed for those under 50, with only 36% of women aged 30-50 saving adequately. Currently 55% of those earning over £30,000 are saving adequately, but only 40% of those earning between £10,000 and £30,000. This is similar to 2012, but there is evidence of lower savings among those earning over £50,000 a year. The Scottish Widows UK Pensions Report is based on research carried out online by YouGov who interviewed a total of 5,216 UK adults over the age of 18 between 25 February and 4 March 2013. Some of the key findings from the report are:
Intermediaries rise to automatic enrolment challenge
11 September 2013
New research from The Pensions Regulator shows the vast majority of payroll administrators and accountants now expect to have some involvement with automatic enrolment.
96% of payroll administrators and 95% of accountants said they anticipate helping clients with their duties according to the research from The Pensions Regulator.
Awareness of the reforms remains high amongst the intermediary groups, which include pension scheme trustees, independent financial advisers (IFAs), employee benefit consultants (EBCs), payroll administrators, HR professionals, accountants and bookkeepers. But new questions introduced since the spring 2013 survey show that intermediaries still have work to do to get to grips with some of the details that they are likely to be assisting with. This includes: the types of earnings to be assessed
CIPP Policy News Journal
16/04/2014, Page 387 of 519
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