Friday Five – On Saving

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Five key points on pensions and savings.

  • Introduced from October 2012 to address under-saving, by 2018 auto enrolment will ensure all eligible workers are incorporated into a pension scheme. According to the Government’s December 2015 review, over 5.6 million workers have been automatically enrolled to date. (1)
  • The Government has reduced the amount someone can save into their pension before being liable for tax to £1.25m, down from £1.8m. This will reduce to £1m in April 2016 and be revised in line with CPI beginning in 2018. (1)
  • In the three months following the April 2015 ‘pensions freedoms’ reforms 204,581 pension policies were accessed. (1)
  • If people put all their defined contribution wealth into a low interest savings account, just 3 in 10 people would be able to secure an adequate income for the last four years of their life. (2)
  • Almost 3 in 10 of Britain’s 55-64 year olds do not have any pension savings at all. (2)

For more, see:

(1)    The Future of Private Pension Saving: http://www.ilcuk.org.uk/index.php/publications/publication_details/the_future_of_private_pension_saving

(2)    Tomorrows World, the Future of Ageing in the UK: http://www.ilcuk.org.uk/index.php/publications/publication_details/tomorrows_world_the_future_of_ageing_in_the_uk

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