Despite record figures...
Workers need new pensions boost, says ABI
There are 7.5m policies in force, an increase of 725,000 or almost 11% on 2015, but the Association of British Insurers says that although contribution levels rose to 8% in 2019, it will still leave the majority of savers without enough retirement income.
A continuing increase in the number of individual work-based pensions is partly attributed to the introduction of auto-enrolment.
However, the ABI says it is important for government to ensure that all areas of the workforce benefit from auto-enrolment, in particular part-time employees, people with multiple jobs and the self-employed.
As people build up many pension pots with different providers as a result of automatic-enrolment, the ABI says there is an increasing need for a pensions dashboard style service to enable savers to get an overview of all their pension savings online.
The technology to support such a service is near completion but a regulatory framework and Government legislation are required to allow a comprehensive service to be rolled out to the public.
Yvonne Braun, director of policy, long-term savings and protection at the ABI, said: “The success of automatic-enrolment shows how the power of policy can benefit society in the long term.
“But we cannot let our guard down now. We urge the Government to widen the auto-enrolment net to help even more people start saving now for their future.
“We also know 8% of a proportion of earnings is not enough for most.
“We need the Government to set out clear plans to push up contributions after 2019, and to explore how best to engage all workers with saving and planning for their retirement. Pensions dashboard services should have a key role here.”