UK. Workplace pension income rises by more than a third
Income from workplace pensions in the UK has risen by more than a third in just 10 years, analysis by financial services firm Equiniti has revealed.
The findings show that average occupational pension income rose from £121 to £167 a week between 2008/09 and 2018/19, representing an increase of 38%.
This is despite other sources of income remaining broadly flat or negative, with occupational pensions now accounting for 30% of total average pensioner income, up from 24% in 2008/09.
Duncan Watson, CEO of Equiniti’s pension business, said that the figures demonstrate how successful workplace pensions have been in helping retirees fund their later lives.
“Occupational pension income is the most rapidly growing source of funds for pensioners and is catching up income provided by the State as the most valuable in retirement,” he continued. “Many people may currently see their incomes stretched if they have been placed on furlough or are facing other financial difficulties as a result of the crisis.
“However, our fear would be that if a large swathe of employees seek to dip out of pension contributions for a short while it could harm positive behavioural attitudes that have become the norm since the introduction of auto-enrolment.”
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