DWP 12m Not Saving Enough Pensions

DWP 12m Not Saving Enough Pensions.

Research from the Department for Work and Pensions (DWP) has claimed that 11.9m people in the UK are not saving enough in their pensions.

DWP research suggests that:

• 8% have achieved less than 50% of the target needed for their retirement
• 80% are at over 50% of retirement target

Pension Minister, Steve Webb, claims that the new Workplace Pensions, were employees are auto-enrolled in the scheme and must physically opt out of they do not wish to save, will in part solve the problem.

Comment

These claims we suggest are skewed. It will only be members of salary related pensions that are on and above target. The majority of government related workers have their gold plated pensions. For the rest of us in investment linked pensions, the future looks bleak.

We all need to save more. Education and access to quality financial advice is key.

We do not believe the Government could actually afford it is we all saved what we should be saving in pensions as the tax relief bill would cause considerable strain on Government finances. There is a conflict of interest here.

That said, we are doing our best to inform clients how much they should really save. Read our article on how much you should save in a pension and watch the video on this page.