Bloomberg News

U.K. Pension Saving Falls to Lowest in 10 Years, Government Says

December 30, 2011

Dec. 30 (Bloomberg) -- The number of people saving in private-pension plans in Britain has fallen to the lowest level in the past 10 years, the government said.

Only 38 percent of working-age people -- 11.6 million out of 30.4 million -- are putting money into retirement plans, the Department for Work and Pensions in London said in an e-mailed statement today. That’s down from 46 percent in 2000.

“With fewer people saving into a pension, lower annuity rates and an average of 23 years in retirement, many people could face a poorer future in their later lives,” Pensions Minister Steve Webb said in the statement. “We simply must put a stop to this trend and get people saving.”

The government has introduced changes to pension rules under which companies will have to enroll employees automatically in a pension plan starting in 2012. At the same time, it’s curbing the more generous pension entitlements for public-sector workers, a step that prompted a one-day strike last month.

The decline in private pension saving is biggest among men and people below age 40, the DWP said.

--Editors: James Hertling, Jeffrey Donovan

To contact the reporter on this story: Eddie Buckle in London at ebuckle@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net


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