Record high for occupational pension schemes members

Total membership of occupational pension schemes has reached the highest level since the figures were first recorded by the ONS in 1953. The total in the UK for 2015 was 33.5 million, representing an increase of 10% compared with 2014 (30.4 million), according to data released today.These estimates exclude participation in other workplace (group personal) pensions, the ONS stated.The report showed active membership of occupational pension schemes was 11.1 million in 2015, split between the private (5.5 million) and public sector (5.6 million).For private sector defined contribution schemes, the average total (member plus employer) contribution rate was 4.0% in 2015, broadly comparable with 2014.Membership and contribution rates are likely to have been influenced by auto enrolment and related recent workplace pension reforms, the ONS said.David Newman, head of pensions at Close Brothers Asset Management, said: “Pension freedoms have stolen the limelight since they were introduced in April 2015, yet behind the scenes auto enrolment has been doing a lot of heavy lifting for savers in the private sector.“The landmark workplace initiative has seen year on year success, with a 10% increase in the number of people enrolled on occupational pension schemes year on year.”He warned, however, that despite auto enrolment “making significant inroads”, the mandated contribution levels of 2% of pensionable salary (1% per employer and employee respectively) will “leave a gaping hole in people’s pension pots when they enter retirement”.He said: “We need to make sure that people are saving enough, and also saving in the right way. It is crucial that people adjust their risk appetite dependant on what stage of their retirement journey they’re at, to ensure they have the best chance of enjoying the lifestyle they want in retirement.”The survey was first undertaken in 1953, then in 1956 and 1963, and then every 4 to 5 years until 2004 when it became an annual survey.

Record high for occupational pension schemes members

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