UK. Workplace pensions bounce back after Covid-19 effects
On the go: Workplace pension contributions grew by more than 15 per cent in the second quarter of 2021, when compared with the previous year, due to contribution levels recovering after the pandemic, according to the Office for National Statistics.
The ONS’s latest quarterly survey on funded occupational pension schemes in the UK, published on Tuesday, showed that contributions in private sector employee and employer defined contribution schemes grew by 19 per cent and 18 per cent, respectively, in Q2 2021 when compared with Q2 2020.
This hike is more pronounced than in previous years, as the base level was low due the impact of Covid-19 last year, the ONS said.
The statistics also showed that at the end of June 2021, total DC membership was 25.3m, while total defined benefit and hybrid membership stood at 18.5m.
The value of gross assets excluding derivatives in DB schemes increased by 3 per cent to £2.7tn between the first quarter of 2021 and Q2 2021.
Over the same period, private sector DC and public sector DB schemes also experienced growth, of 9 per cent and 4 per cent, respectively.
The strong figures from DC schemes can be attributed to the growth in membership, which increased by 2.7m over the year, according to Hargreaves Lansdown.
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