Richard Birkin, Head of DC Pensions, KPMG, comments on HMRC data out today showing an increase in personal pension contributions:
“Today’s figures show us largely what we already knew, which is that for the most part, automatic enrolment is working. An extra 1.3 million people contributed to personal pension schemes in 2015 when compared to the previous year, and this trend has continued through 2016.
“Average contribution levels have fallen over the last few years attributable in the most part to smaller companies enrolling their workforces. It’s interesting that the contributions of young people have almost reached pre-crisis levels yet the reverse is true of older individuals.
“We are already seeing companies prepare for increased minimum contribution levels and in many cases already looking beyond just pensions to offer wider workplace savings, taking into consideration the wider needs of their employees.
“Whilst these figures only look at one part of the Defined Contribution market, this trend is reflective of what’s also happening in Master Trusts. This is good news for consumers, the savings market and the wider UK economy.”
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Christina Bridge, KPMG Corporate Communications
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