It is pension awareness day and new research reveals that one in five aged between 22-29 are not contributing towards their pension and only 15% of millennials are contributing 7% and over.
The study, conducted by Investing Reviews looked at how Brits contribute to their pensions.
You can view the full research here: https://investingreviews.co.uk/pensions/the-british-pension-report/
The study analysed UK data relating to workplace pensions to reveal enrollment rate by region, age group and occupation as well as where Great Britain stands globally in terms of workplace pensions.
The most common pension contributions by age group
|Employee age||Pension contributions||Proportion of age group|
|16 – 21||5% to 6%||32.7%|
|22 – 29||3% to 4%||24.5%|
|30 – 39||7% and over||21.8%|
|40 – 49||7% and over||26%|
|50 – 54||7% and over||26%|
|55 – 59||7% and over||24.9%|
|60 – 64||5% to 6%||22.8%|
|65 & over||5% to 6%||23.7%|
Employees with pension contributions of 7% and over by age group
|Rank||Employee age||Proportion of age group|
|1||40 – 49||26%|
|1||50 – 54||26%|
|3||55 – 59||24.9%|
|4||65 & over||22.4%|
|5||30 – 39||21.8%|
|6||60 – 64||20.7%|
|7||22 – 29||15.6%|
|8||16 – 21||10.2%|
The full research can be viewed here: https://investingreviews.co.uk/pensions/the-british-pension-report/
- The research also found the UK was amongst the countries providing the lowest % of pre-retirement earnings in retirement with 28.5%, less than half of the global average of 59.8%.
- The most googled pension question is “How much is state pension” with 442,700 annual searches followed by “What is pension credit?” (106,500 annual searches) and “How much state pension will I get?” (104,200 annual searches). It was also found 36,500 have searched for “How much do I need to retire?” over the past 12 months.
Simon Lister, a financial author for Investing Reviews, commented on the research:
Simon Lister, an IFA at Investing Reviews, commented on the research:
“The average age of retirement is on the rise so it is of utmost importance to get your finances in line and start contributing to your pension. One in five Brits between the ages of 22 – 29 aren’t contributing towards their pension, which is alarming! The age of retirement is just going to keep getting more and more unachievable if you don’t contribute to your pension as early as possible.
“There isn’t enough education for pensions and state pensions, Britons are going to Google to get their answers for pensions, many have no idea how or when/if they will retire. As a country, we are amongst the worst in the world for pre-retirement earnings in retirement with just 38%. Stats like this are doing nothing other than contributing to the retirement anxiety felt by many.
“Much has been said about the triple lock state pension and what is coming up around the corner. Many are concerned about what their pension will look like, over 150,000 have been searching “Triple Lock State Pension” to see how their pension will be affected, and more education is needed to help those who are unsure.”