Another day, another smart report arguing for higher payments into our pensions. Standard Life and WPI Economics have published a paper saying that minimum contribution rates into workplace pensions must rise.
Today, workers contribute a minimum of 5 per cent of their salary to their pensions while their employer pays in 3 per cent. Not enough, the report says. Both rates should rise immediately to 6 per cent. Otherwise, it is said, millions of today’s workers will face poverty in retirement.
Pension contributions should rise. They should already have risen, in fact
This is entirely sensible and right and in line with the consensus among pensions experts and pensions industry people. On the whole, we’re just not saving enough to provide us with the lifestyles we want in later life. Smart reports like the latest from WPI are good and valuable contributions to debate on this issue. (Disclosure: Matt Oakley of WPI is a friend and former colleague of mine.
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