Total membership of occupational pension schemes in the UK was at the highest level ever in 2015, according to the ONS’s Occupational Pension Schemes Survey series.
Active membership of occupational pension schemes exceeded 11 million in 2015, considering both private and public sectors. Total memberships in the UK equated to 33.5 million last year, or a 10% increase over 2014. An analysis of private sector defined contribution schemes showed the average total in 2015 was quite comparable to 2014 numbers, but membership and contribution rates are likely to have been influenced by factors like workplace pension reforms.
General Secretary Frances O’Grady recently replied to the staggering statistics saying auto-enrolment certainly started with a bang by bringing “millions more people into workplace pensions.” He continued by explaining the job isn’t nearly done, though. He said the UK should be extremely concerned about plunging pension contributions. More work definitely needs to be done by the government to provide a long-term plan for how pensions will provide retirement pots sufficient for low and middle-income earners.
Additionally, Tom McPhail of Hargreaves Lansdown reminds the government of the many millions of people who are opting for self-employment who are not enrolled in a pension. Between self-employment and the shift away from defined benefit pensions in the private sector, HR experts are predicting increased financial pressures on employers and employees alike.