Emma Byron, Managing Director, Legal & General Retirement Solutions, comments on today’s funded occupational pension schemes statistics from the Office for National Statistics (ONS):
“Workplace pension contributions have continued to bounce back following the impact of Covid-19, with employee and employer contributions increasing by 4% and 8% respectively in Q3 of 2021, likely due to easing restrictions at the time. Auto-enrolment has been a huge success, but there is much more to be done, particularly as the cost of living continues to squeeze. In such an environment, it’s important that consumers are aware of the long-term impact of their pension contributions, alongside the compound effects of investing. At Legal & General, we are calling for minimum auto-enrolment contributions to be increased to 12% over the next few years, split equally between savers and their employers. There are also a great number of people who are missing out on the opportunities provided by auto-enrolment. We support a reduction in the age threshold from 22 to 18 years old and abolishing the lower earnings limit so that people can start building their retirement savings earlier.”
