Private sector pension saving on the rise with young people

New DWP figures show that automatic enrolment is continuing to play a major role in reversing the decade-long decline in private sector pension saving.

The statistics show that there were 6.7 million eligible workers in the private sector saving in a pension in 2013 (46%) – up from 5.9 million (42%) in 2012.

Young people working in the private sector showed the largest increase in the proportion saving into a pension, growing more than any other age group – 30% of those aged 22 to 29 saved in 2013 compared with 24% in 2012.

But growth in the number of pension savers was seen across all age groups, including those aged 50 to State Pension age.

The increase in the number of people saving is largely due to the government’s policy of automatic enrolment into workplace pensions which is currently being rolled out and has already affected over 4.7 million workers.

Pensions Minister Steve Webb said:

Automatic enrolment is getting Britain saving and helping build a fairer society.

Almost 7 million people in the private sector are now saving, including many from low to middle income occupations who have never had their own workplace pension before.

And, surprisingly it is young people who are the age group leading the way with almost 1 in 3 of those in their 20s putting something by for their retirement.

I hear too often that people wish they had started saving for their pension early, so I am delighted to find out that more young people are saving.

The first figures on pension saving by region show increases across Scotland, Wales and all the English regions since 2012.

Scotland and the south-east of England have the highest percentage of people saving in the private sector – both 49%. The area with the biggest rise – a 6 percentage point increase – is the south-west of England.