Pension saving BBC article

eastcorkram

At first , I found the figures mentioned here hard to believe, especially as there is now auto enrollment. Then realise it's not half of working people not saving into a pension at all, but half of working age people. So, that doesn't mean much, unless I know how many working age people are actually working. 

https://www.bbc.co.uk/news/articles/ckgj84ejd9wo

Baldytyke88

"only one-in-four low earners in the private sector are saving into a pension"

Some buy their own house or save in an ISA, some are economically illiterate and invest in what they know.

Some are just not the sort of person who thinks about the future, until they reach an older age.

westv

eastcorkram said:

At first , I found the figures mentioned here hard to believe, especially as there is now auto enrollment. Then realise it's not half of working people not saving into a pension at all, but half of working age people. So, that doesn't mean much, unless I know how many working age people are actually working. 

https://www.bbc.co.uk/news/articles/ckgj84ejd9wo

Google AI says 75.1% of working age people are in employment.

leosayer

The article mentions people of Pakistani heritage of which I know a few 

None of them consider pensions at all - it's all about property. Those that are entitled to a pension eg. LGPS opt out.

Andy_L

eastcorkram said:

At first , I found the figures mentioned here hard to believe, especially as there is now auto enrollment. Then realise it's not half of working people not saving into a pension at all, but half of working age people. So, that doesn't mean much, unless I know how many working age people are actually working. 

https://www.bbc.co.uk/news/articles/ckgj84ejd9wo

AIUI autoenrolment is based on actual earnings rather than full time equilivent, so suspect a lot of the "only one-in-four low earners in the private sector are saving into a pension" is because of parttime NMW workers

Albermarle

Andy_L said:

eastcorkram said:

At first , I found the figures mentioned here hard to believe, especially as there is now auto enrollment. Then realise it's not half of working people not saving into a pension at all, but half of working age people. So, that doesn't mean much, unless I know how many working age people are actually working. 

https://www.bbc.co.uk/news/articles/ckgj84ejd9wo

AIUI autoenrolment is based on actual earnings rather than full time equilivent, so suspect a lot of the "only one-in-four low earners in the private sector are saving into a pension" is because of parttime NMW workers

That was my thoughts as well. It still seems low though although it depends what the definition of 'low earner' is.

kempiejon

The ONS have figures. 
The workplace pension participation rate in the UK was at 79% (22.6 million employees) in April 2021, up slightly from 78% in 2020;.
In April 2021, the gap in employee workplace pension participation rates between the public (91%) and private sectors (75%) was among its lowest levels, mainly driven by increased participation in the private sector up from 32% in 2012.

  https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/workplacepensions/bulletins/annualsurveyofhoursandearningspensiontables/2021provisionaland2020finalresults

Silvertabby

leosayer said:

The article mentions people of Pakistani heritage of which I know a few 

None of them consider pensions at all - it's all about property. Those that are entitled to a pension eg. LGPS opt out.

Possibly because the LGPS investment strategies are not Sharia compliant?

leosayer

Silvertabby said:

leosayer said:

The article mentions people of Pakistani heritage of which I know a few 

None of them consider pensions at all - it's all about property. Those that are entitled to a pension eg. LGPS opt out.

Possibly because the LGPS investment strategies are not Sharia compliant?

I didn't ask about Sharia compliance and they never mentioned it. From my conversations they have little knowledge or interest in any kind of fund / equity investment or the tax benefits of pensions. Instead, they are most likely to have a side hustle or investment properties.

The reasons given for opting out of LGPS is that they can make better use of the money now for buying a long term home for themselves and their parents and grandparents or for buying an investment property.

The expectation is that once they themselves stop working, their children will already be working and providing for the household, keeping the model going. 

JoeCrystal

Here is another document published today. Not sure if someone did it already: Analysis of Automatic Enrolment saving levels

https://www.gov.uk/government/statistics/analysis-of-automatic-enrolment-saving-levels/analysis-of-automatic-enrolment-saving-levels

Hoenir

leosayer said:

The expectation is that once they themselves stop working, their children will already be working and providing for the household, keeping the model going. 

As people become wealthier they have fewer chidren. As in the Western world. There's economically fewer active people to support those having a party.