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Good news: More people are saving in a pension

Good news: More people are saving in a pension

Category: Pensions

Updated: 09/09/2015
First Published: 09/09/2015

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Have you been signed up to a workplace pension as a result of automatic enrolment? If so, you're probably feeling the benefits – and can continue to do so for the long term – with research revealing that more people are now saving for retirement.

Positive impact

The figures, from Scottish Widows, show that over half (52%) of employees are now saving adequately for retirement, up six percentage points in the last 12 months, so it seems pretty clear that the ongoing implementation of auto-enrolment is having the desired impact.

Not only that, but 39% of respondents now feel optimistic about their long-term future, compared with 36% in 2014, showing that "employees are really starting to reap the benefits of workplace pension savings", said Lynn Graves of Scottish Widows. Employees in large businesses reported a particular improvement, with 66% now saving adequately, up from 53% two years ago, and that means more people will be able to enjoy a comfortable retirement as a result.

The positive impact of auto-enrolment is clear, as just 40% of employees in firms that haven't yet staged say that they're saving adequately, while 30% confess that they're not saving anything at all towards retirement. If you're yet to be enrolled, fear not – all smaller employers will reach their staging date in the next few years, after which they'll be legally required to offer you a workplace pension, so you won't have long to wait until you can benefit.

Reap the rewards

If you're one of the thousands of employees who've been enrolled into a pension in the last three years, you can be safe in the knowledge that you're building up a nice nest egg for your retirement. Indeed, 60% of those in large organisations said they'll rely on their company pension for a reasonable standard of living in retirement, just showing how important it is to get saving.

But have you thought about using other savings vehicles to prepare for your future? This is particularly important for those who haven't yet been enrolled into a workplace scheme, as unless you've taken the plunge with a personal pension, you'll need to start getting organised. Utilising your tax-free allowance should be at the top of the agenda, be it through a cash ISA or a stocks & shares version, but however you do it, start planning now and you can be confident that you're doing everything you can to secure your long-term financial stability.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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