Pay rises unlikely to lead to pension contributions rise, IFS says

IFS finds employees do not capitalise on opportunities to boost savings

Martin Richmond
clock • 2 min read

Employees are running the risk of poor retirement outcomes by failing to increase their contributions during significant changes to their finances, according to the Institute for Fiscal Studies (IFS).

The IFS report - When and why do employees change their pension saving? - published today (24 February), found savers failed to utilise substantial changes to their financial circumstances, such as a pay rise, to increase their pension contributions and boost their retirement savings. The findings discovered less than one in 100 private sector employees opted to increase their pension contributions in response to a 10% pay rise, including employees aged between 50 and 59 years old, putting them at increased risk of having insufficient income in retirement. The institute noted other su...

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

'Caution' required over potential use of pensions for house deposits

'Caution' required over potential use of pensions for house deposits

Research finds the number of retirees living in rented property could treble by 2040

Martin Richmond
clock 23 January 2026 • 4 min read
Hidden 'systemic barriers' perpetuate gender pensions gap

Hidden 'systemic barriers' perpetuate gender pensions gap

Entrenched barriers, not lack of financial confidence to blame

Jenna Brown
clock 23 January 2026 • 3 min read
Mind the (widening) gender pensions gap

Mind the (widening) gender pensions gap

‘A terrifying outcome for women in retirement’

Caitlin Southall
clock 14 January 2026 • 4 min read