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Auto-enrolment plugs private pension hole
WORKERS in private firms have started plugging the gaping hole in their pension pots, a study from Scottish Widows shows today.
Staff are saving an average of 11.1 per cent of their income towards their pensions this year, up from 9.6 per cent last year.
As a result 53 per cent of the population is saving more than the 12 per cent of salary Scottish Widows says is necessary for an adequate standard of living, the highest proportion in five years.
Auto-enrolment in pensions at big firms had helped, the firm said.
However, one-third of those surveyed do not know how much they need in retirement. And the public sector is in reverse – workers are saving 8.7 per cent of salaries, down from 8.9 per cent last year.