More than two thirds (70%) of Brits would like the government to introduce a compulsory contribution rate as a total percentage of their monthly salary to put into their defined contribution (DC) salary, a survey by BlackRock has found.
Auto-enrolment minimum contributions are set to increase to 8% in April 2019 but BlackRock warned this could create "a false sense of security" among workplace pension savers about how much they need to save for retirement. As an example, the asset management group said a 30-year-old currently earning £30,000 who wanted around two-thirds (£21,000) of their salary in retirement would need to contribute 10% of their monthly salary to their workplace pension. If the same person waited until age 35, however, their contributions would need to be 14% to achieve the same goal. If they delaye...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
