Pensions contributions decrease as methods change

Friday, October 28, 2005

Less than half of working age people are contributing to any form of pension other than state pension, the latest research from the Office for National Statistics (ONS) has found.

The findings were part of the Pension Trends publication, an ONS produced information source to provide a statistical background to the pensions debate.

The information released in the publication contained a number of interesting statistics relating to the state of pensions and pension savings in the UK.

Between the years 1999 and 2004, the proportion of working age men contributing to a private pension scheme dropped from 52 per cent to 48 per cent, whereas the number of females doing the same rose to 40 per cent.

The report also found that whereas in 2003 there were 3.3 million people of working age to every person of pensionable age in the UK, by 2051, this number is likely to be reduced to 2.3 million as the population ages.

The nature of pensions savings has also changed, with the number of employees saving by both salary related schemes and money purchase schemes dropping in the 1999 – 2004 period.

It was announced yesterday that pension advice is the main reason for people seeking an independent financial adviser.
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