The Department for Work & Pensions today published its ‘Workplace pension participation and savings trends: 2009 to 2024’.
It finds that round 9-in-10 (89%) eligible employees in Great Britain were saving into a workplace pension in 2024 with 21.7 million eligible employees saving, an increase of 0.8 million more eligible employees saving compared to 2023.
The increase in the number of employees saving is more substantial than previous years which DWP attributes to an increase in the number of employees brought into AE eligibility, as the earnings trigger (currently £10,000) has remained frozen in recent years and the changes made by ONS to the ASHE data now estimate a greater number of higher earners who are more likely to be saving into a workplace pension.
The number of new savers opting out of their pension contributions reached 9.9% in Q3 2024-25 reflecting how the continued cost-of-living pressures are impacting pension saving.
David Brooks, Head of Policy at leading independent financial services consultancy Broadstone, said: “While the DWP’s annual publication of workplace pension saving points a rosy picture with strong and growing participation among eligible employees, there remains cause for concern.
One in 10 new savers are opting out of their pensions demonstrating the ongoing battle between longer-term saving and immediate budgetary constraints. The findings released alongside the launch of the Pensions Commission show that nearly 15 million people are under-saving for retirement and nearly half (45%) of working age adults are saving nothing at all into a pension, with lower earners, the self-employed and some ethnic minorities particularly at risk.
The Commission demonstrates the Government’s commitment to reversing the inadequate saving and serious inequality with the pensions system. We look forward to working together with the industry so that we can focus on achieving our objective of delivering the best outcomes for the highest number of people in later life.”
