£11bn DC pension shortfall due to savers' lack of understanding - Aon Hewitt

Four out of five DC contributors 'not saving enough'

Hannah Godfrey
clock • 2 min read

Defined contribution (DC) pension contributors are saving £11.4bn less than they need to each year, according to a survey by Aon Hewitt.

The UK-wide survey also found individuals were, on average, contributing £1,400 a year too little into their pension pots and that less than a fifth (16%) of people contributing to a DC pension scheme were saving enough to maintain their standard of living in retirement. Carried out by YouGov, the survey concluded 8.1 million people to a DC scheme, and of these, around a third (2.75 million) do not know the level of retirement income they are expecting to receive. Additionally, around half (4 million) will not have saved enough at retirement to maintain their standard of living, based on...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Mind the gap: Why advisers have a key role in closing the gender pension divide

Mind the gap: Why advisers have a key role in closing the gender pension divide

'While access to pensions has improved, barriers remain'

Julia Peake
clock 22 October 2026 • 5 min read
Planning points: Paying pension funds to charity on death

Planning points: Paying pension funds to charity on death

IHT on pensions may create opportunities for charitable giving

Martin Jones
clock 16 October 2026 • 3 min read
Torsten Bell: Pensions industry must 'give ground' to what savers trust

Torsten Bell: Pensions industry must 'give ground' to what savers trust

Torsten Bell says what the industry is doing is a ‘triumph’, but there must be transparency

Holly Roach
clock 15 October 2026 • 1 min read