48% of respondents are saving into a workplace pension

Less than half (48%) of respondents make regular contributions into a workplace pension scheme, according to research by Friends Life.

The research also found that 19% do not have a pension at all, 11% do not know how much they contribute in their pension, and 35% save less than £100 a month.

Two-thirds (61%) of respondents admitted they are not confident in their own abilities to save enough for their retirement without government or employer intervention. Just 39% believed they could save enough on their own, without being forced to save by the government or being auto-enrolled by an employer.

When asked how they feel about saving into a pension scheme being compulsory, 46% said they would see it as a helpful way to ensure they had a decent level of savings. Nearly a quarter (24%) said they would view it as an additional form of tax that they would not want to pay, while 30% said they did not have any strong feelings about it.

The research also found:

  • 5% are not sure whether they have a pension or not.
  • 3% do not know if their employer offers a pension, which they could be saving into already.
  • 8% said they have declined to join their employer pension scheme.
  • 33% said paying off debt is their top financial priority.
  • 15% said saving for a house deposit is the most important financial challenge to them.

Martin Palmer, head of corporate benefits marketing at Friends Life, said: “Our research showed that many employees recognise they need some encouragement with getting into the savings habit, with nearly half saying they would see compulsory saving as positive.

“This is very interesting news ahead of automatic enrolment in October and beyond. Auto-enrolment will provide a nudge to get many people saving into a pension that are not currently making any provisions for their retirement.

“However, it is important consumers remember the levels of contribution made under auto-enrolment may not be sufficient to provide the level of income in retirement that they want, and they may want to consider making additional savings to help them reach their goal.”

Read more articles on retirement savings