At least 15m Britons not saving enough to retire, Pensions Commission says
Summary
A government-backed Pensions Commission report warns that 15 million people in Britain are not saving enough for retirement, and this number could grow to 19 million without changes. The report highlights risks of many facing financial hardship after retirement and calls for major reforms to the pension system.Key Facts
- 15 million Britons currently do not save enough for retirement; this could rise to 19 million.
- About 45% of working-age adults do not save into a pension, despite many being employed.
- Low and middle earners are most at risk of inadequate pension savings.
- Auto-enrolment requires employers to contribute at least 3% to pensions, with employees paying 5%, totaling 8%.
- Only 4% of fully self-employed workers save for retirement; younger self-employed save even less.
- Around 30% of private pension funds are taken out at the earliest chance, often spent on large expenses.
- Women approaching retirement have about half the pension savings of men (£81,000 vs £156,000).
- The commission will publish final recommendations next year to improve the pension system.
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