![]() National Pension Tracing Day, a pensions industry initiative aimed at the 1-in-20 people who have lost track of earlier retirement plans, takes place on Sunday 30 October 2022. Although times are clearly tough, anyone considering stopping saving in their workplace pension during the cost-of-living crisis shouldn’t do so lightly.” For some savers, the double hit of rising energy and housing costs will be the straw that breaks the camel’s back. “The government will undoubtedly be nervously watching those participation rates. Tom Selby, head of retirement policy at AJ Bell, warned that while the opt-out figure remains “relatively low”, this could be set to rise, pointing to research from his company that showed around a third of people having either already quit their workplace pension, or considering doing so in response to rising living costs. This is likely because of the difficulties experienced during the pandemic and the current cost-of-living crisis.” Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, said: “Opt-out rates have always been low but have crept up over the past year or so. Total annual workplace contributions have also been on the rise, with the total pension contributions of all eligible private sector employees increasing in real terms from £41.5 billion in 2012 to £62.3 billion 2021.īut the increase in opt-out rates over the past couple of years has prompted concern around the pensions industry. ![]() Overall, pension participation and contributions rates – the amount that workers pay into their pension – have increased significantly over the past decade.Īccording to the DWP, the largest increase in participation rates has been seen within personal service occupations in the public administration, education and health sectors, where take-up has grown from 14% to 86% over the period. Its aim was to increase the take-up of employers’ staff pension schemes by making it a condition that qualifying workers had to actively decide to opt out from joining a workplace arrangement. Pensions auto-enrolment was introduced to the UK in 2012. The Department for Work and Pensions (DWP) said the proportion of new workers choosing not to join the schemes offered by 12 major workplace pension providers had risen from 7.6% in January 2020 to 10.4% in August this year. The proportion of savers choosing not to participate in their workplace pension has risen by a third since the beginning of January 2020, according to the latest government figures, writes Andrew Michael. Retirement Planning: Workers Shunning Pensions As Cost-Of-Living Pressures GrowĢ7 October: Rising Opt-Out Rates Dampen Auto-Enrolment Figures Forbes Advisor has selected Runpath Regulated Services Limited to compare a wide range of loans in a way designed to be the most helpful to the widest variety of readers. The comparison service on our site is provided by Runpath Regulated Services Limited on a non-advised basis. While we work hard to provide accurate and up to date information that we think you will find relevant, Forbes Advisor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Forbes Advisor. These “affiliate links” may generate income for our site when you click on them. Second, we also include links to advertisers’ offers in some of our articles. This site does not include all companies or products available within the market. The payments we receive for those placements affects how and where advertisers’ offers appear on the site. ![]() This comes from two main sources.įirst, we provide paid placements to advertisers to present their offers. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive payment from the companies that advertise on the Forbes Advisor site. ![]() The Forbes Advisor editorial team is independent and objective.
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