Research shows nearly half of working-age adults in the UK are not contributing to a private or workplace pension. Employers must offer a pension scheme and automatically enrol eligible staff (those aged 22 to state pension age, earning at least £10,000). Employees contribute 5% of earnings, while employers add 3%. Yet, many people still opt out.
Why aren’t people saving?
Relying on the state pension – Some believe it’s enough. But from 2025/26, the full state pension is just £11,973 a year, only available after 35 years of National Insurance contributions.
Unaffordability – Many workers say they can’t spare the money, focusing instead on daily living costs.
“Retirement is ages away” – Younger people often prioritise spending now, only to regret it later when they miss out on compound growth.
Lack of awareness – Many don’t understand why opting out harms their future, and employers aren’t required to explain.
The Risk
Without greater savings, millions could face financial struggles in retirement. Experts stress the importance of contributing more and starting earlier to build a secure future.