Most savers on course for retirement

Most savers on course for retirement

Almost three in five people in the UK believe they are saving enough for a comfortable retirement, according to research.

Scottish Widows' annual retirement report showed 59% of 5,036 adults are on course to maintain their standard of living when they retire, up from 55% in 2018.

The research indicates that the latest increase in minimum contributions into a workplace pension through auto-enrolment have been well received by employees.

In April 2019, employees earning more than £10,000 a year and over the age of 22 saw their minimum contributions rise to 5%, while minimum employer contributions rose to 3%.

Scottish Widows believes contributions of at least 12% of an individual's income would be enough to fund what it considers to be a comfortable retirement.

Despite the generally positive findings, 22% of respondents expect they will never be able to retire, prompting Scottish Widows to call for further action.

Peter Glancy, head of policy at Scottish Widows, said:

"With no further step-ups in auto-enrolment contributions planned, bold action must be taken to ensure no one has to face the spectre of poverty in their later years.

"While the past 15 years have proved that things have changed for the better, auto-enrolment alone won't avert a pension crisis in the UK.

"Government and industry need to take the next step together."

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