Britons who pay into a workplace pension are not saving enough to get by when they retire but can’t afford to contribute more because of the cost of living squeeze, MPS have been told

Anna Mowbray, research and policy officer at Community Trade Union, told the work and pensions committee that workers are worried about their future pension but the biggest concern now is facing soaring energy and food bills.

“Given the current cost of living crisis that people are facing there is that real temptation to say: ‘I need money in my pay packet now. I reckon it is important to save more for my future but I’m struggling here and now today,’” she said.

A recent survey showed that just over a quarter of Britons who pay into a workplace pension worry that they are not saving enough to get by when they retire.

Low-income households, women and people in their thirties and forties are the most concerned, according to a survey of 2,000 adults by the Pensions and Lifetime Savings Association.

“There is an element of nanny state because if you walk away from the debate on the basis that people would rather have the money in their pockets, we are just going to have a stampede of people getting to a certain age where they can’t work anymore and [are] totally reliant on a state pension,” Terry Pullinger, deputy general secretary at the Communication Workers Union (CWU), told MPs.

Jack Jones, policy and campaigns support officer at Trade Union Congress (TUC), called for contributions to rise to 15%.

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