Marvin OnumonuPrivate sector employees paid a record £25.5bn into workplace pensions in 2024, according to analysis by Broadstone.
The data, based on the Department for Work and Pensions (DWP) annual survey, showed this was up from the previous high of £25.3bn in 2019.
The increase was driven by more people saving into defined contribution pensions and better data capturing higher earners.
Employers contributed £46.4bn in 2024, bringing total annual pension savings to £82.8bn for eligible private sector workers.
This was slightly down on 2019’s record of £83.6bn due to lower employer payments.
Median pension contributions stayed flat at £3,230 a year, which is still below the £3,390 recorded in 2019.
Richard Sweetman, senior DC consultant at Broadstone, said: “While it is great that the aggregate value of employee contributions has risen to record levels, this is primarily driven by rising numbers of workplace pension savers.
“It is alarming that median contributions have not really moved much of late in a trend that is unlikely to escape the gaze of the newly-formed Pensions Commission which is charged with improving pension adequacy in the UK.
“As the Chancellor examines her available options at the Autumn Budget for raising revenue, the record value of pensions tax relief for private sector employees will also be noted with interest.”
Sweetman added: “Small, incremental increases in contributions can have a big impact over a working life, particularly when combined with strong investment performance and low fees.
“Savers should review their pension regularly to ensure their money is working hard, and consider how their total retirement income, including the State Pension, measures up against the lifestyle they want.
“From there, they can adjust their contributions to help close any gap.”
