New pensions may not be enough

According to a new report released by the Pensions Policy Institute today, the new system of auto-enrolment for workplace pensions may not be enough to provide an adequate income for people to live on in retirement. The report suggests that if a worker aims to live on two thirds of their working income while in retirement, then saving eight per cent of their earnings from age 22 (combined with the state pension) may not be sufficient. Lee Hollingworth of Hymans Robertson commented: “The problem for most workers is that it is incredibly difficult to know exactly how much they should be saving as it depends on a huge number of variables.”