Saving for pensions sinks to 55-year-low
THE number of employees paying into company pensions has fallen to its lowest level in 55 years.
Last year only 8.3 million had a work pension – the fewest since 1956, the Office for National Statistics has revealed.
While almost two-thirds of public sector staff pay into work pensions, only one in seven private sector workers does, the study said.
GET YOUR FREE GUIDE TO SAVING FOR A PENSION HERE
Joanne Segars, of the National Association of Pension Funds, said: “It’s astonishing that the pension uptake has slumped to such a low level. With a growing population living longer and longer, it’s the last thing our society needs.”
Rising living costs, including soaring fuel bills, mean that for many a pension is a luxury they cannot afford.
Dr Ros Altmann, of over-50s group Saga, said: “What we have seen over the last decade is a decimation of our once-strong savings culture in the private sector.
“In an ageing population this is particularly serious. There will be more pensioners relying on a meagre state pension.”