20% would save more than auto-enrolment default


One-fifth (20%) of respondents would increase the amount they contribute to their pensions beyond the minimum auto-enrolment contribution rate, according to research by Aegon.

Its research, which is based on a sample size of 4,000 respondents, found that just 6% consider the 2018 default contribution rate of 5% to be unaffordable.

Nearly a third (29%) of respondents say they are willing to make savings contributions at the new rate.

Staff and employers must each contribute a minimum of 1% under the pensions auto-enrolment scheme from the employer’s staging date to 30 September 2017. For the period between 1 October 2017 and 30 September 2018, an employee’s minimum contribution rises to 3% and an employer’s to 2%. From 1 October 2018, the minimum contribution level for staff and employers will increase to 5% and 3%, respectively.

Angela Seymour Jackson (pictured), managing director workplace pensions at Aegon, said: “Auto-enrolment has not only helped employees get on the first rung of the pensions ladder by saving for the first time, but switched them on to a long-term savings habit.

“Incredibly, we’re nearly three years in, with the first tranche of workers about to be re-enrolled and, before we know it, this will be followed by an increase in contributions.

“For the majority of employees (79%), their workplace pension is their main method of saving for retirement and the good news is they value these pensions. A fact much appreciated by employers, whose effort to put the schemes in place has not gone unrewarded. ”