Nine-tenths (89%) of eligible British employees saved into a workplace pension in 2024, according to data from The Department for Work and Pensions (DWP).
Its Workplace pension participation and savings trends: 2009 to 2024 highlighted that this is equivalent to 21.7 million eligible employees saving, an increase of 0.8 million more staff and a one percentage point rise in the pension participation rate compared to 2023.
The overall workplace pension participation rate of all British employees continued to be around 82% in 2024, with 23.3 million employees saving. This is 0.9 million more employees saving compared to 2023.
A tenth (10%) of new savers said they opted out of their pensions in the third quarter of 2024-25 due to the impact of continued cost-of-living pressures on pension saving.
Additionally, 59% of eligible employees working for a micro employer with less than five employees in the private sector are saving into a workplace pension, and 68% of eligible Pakistani and Bangladeshi employees are saving into a workplace pension.
The total annual workplace pension savings for eligible savers was £149.7 billion in 2024, a £49.1 billion real terms increase compared to 2012. In 2024, employee contributions accounted for 29% of saving and employer contributions accounted for 62%.
A DWP spokesperson said: “Statistics within this release allow continued evaluation of the success of auto-enrolment in increasing both the number of savers, and the amount of savings. To continue understanding its role on individual savers, this year the publication has expanded to include information on those accessing a private pension, helping understanding of trends in decumulation, not just accumulation.
David Brooks, head of policy at Broadstone, added: “While the DWP’s annual publication points to a rosy picture with strong and growing participation among eligible employees, there remains cause for concern. The Pensions Commission demonstrates the government’s commitment to reversing the inadequate saving and serious inequality with the pensions system. We look forward to working together with the industry so that we can focus on achieving our objective of delivering the best outcomes for the highest number of people in later life.”
