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Thursday, February 1, 2024

Tenth of UK savers maintain 64% of pension wealth

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Only a tenth of the inhabitants holds 64% of complete pension wealth within the UK, in keeping with the newest figures from the Workplace for Nationwide Statistics.

Median personal pension wealth held by the highest tenth of pension savers was £637,500 between April 2018 and March 2020.

Self employed employees have been much less prone to be paying right into a pension, nonetheless, with solely 20% saving compared to 80% of staff.

They have been additionally extra prone to say they might not afford to contribute to a pension with 39% of self-employed individuals surveyed by the ONS saying this compared to 26% of staff.

Self employed employees have been additionally extra prone to desire different types of saving, with 17% saving for retirement exterior of pensions compared to 9% of staff.

A 3rd of all these surveyed stated they anticipated to be counting on the state for pension provision.

Having a low revenue or not working was the most typical motive for not paying right into a pension, with 54% of these not at present saving saying this.

Outlined contribution pensions (26%) overtook outlined profit pensions (23%) as the most typical automobile for pension saving for the primary time.

Adrian Lowery, monetary analyst at wealth supervisor and Monetary Planner Evelyn Companions, stated the present pension system was leaving some gaping holes in pension saving.

He stated: “The figures lay naked the necessity not only for lower-paid employees to be given extra help in making private provisions to complement the state pension. But in addition, and there may be probably loads of crossover, the gaping gap in pension saving among the many self-employed, who will not be nudged by auto-enrolment and don’t profit from employer contributions.”

Between April 2018 and March 2020, 57% of UK residents beneath State Pension age have been actively saving for retirement utilizing personal pensions. This compares to 43% who have been saving earlier than the introduction of automated enrolment in 2012.

The ONS launched its newest personal pension wealth report ‘Saving for retirement in Nice Britain: April 2018 to March 2020’ on Friday. The report appears to be like at personal pension wealth amongst individuals beneath State Pension age. Knowledge was collected from 31,829 people.


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