Marvin OnumonuThe Department for Work & Pensions (DWP) published its annual workplace pension participation and savings trends report, which found 89% of eligible employees in Great Britain were saving into a workplace pension in 2024.
This meant 21.7 million eligible employees were saving, up by 0.8 million from 2023.
The rise in savers was bigger than in previous years.
The DWP said this was because more employees were eligible for automatic enrolment as the earnings trigger of £10,000 stayed the same, and new Office for National Statistics (ONS) data estimated a higher number of high earners, who are more likely to save into a pension.
The number of new savers opting out of their pension contributions reached 9.9% in Q3 2024-25.
The report linked this to continued cost-of-living pressures.
David Brooks, head of policy at Broadstone, said: “While the DWP’s annual publication of workplace pension saving points a rosy picture with strong and growing participation among eligible employees, there remains cause for concern.
“One in 10 new savers are opting out of their pensions demonstrating the ongoing battle between longer-term saving and immediate budgetary constraints.
“The findings released alongside the launch of the Pensions Commission show that nearly 15 million people are under-saving for retirement and nearly half (45%) of working age adults are saving nothing at all into a pension, with lower earners, the self-employed and some ethnic minorities particularly at risk.”
Brooks added: “The Commission demonstrates the Government’s commitment to reversing the inadequate saving and serious inequality with the pensions system.
“We look forward to working together with the industry so that we can focus on achieving our objective of delivering the best outcomes for the highest number of people in later life.”
