Royal London report: Higher auto-enrolment contributions, pension adequacy and economic outcomes
More than ten years after automatic enrolment was introduced, many employees with defined contribution pensions still face the risk of inadequate pension savings.
The report uses scenario analysis to assess the impact of five different reform scenarios on pension adequacy and the wider economy.
It finds that such reforms would not only strengthen pension savings and ease short-term liquidity concerns but also generate wider economic advantages.
Download the full report to find out:
- 36% of people with a defined contribution (DC) pension are projected to meet Target Replacement Rates (TRR).
- Just 26% are expected to reach the moderate Retirement Living Standards threshold.
- If employer and employee contributions both rise to 7% (14% in total), this raises the share of households achieving adequacy by around 5 percentage points in 2040.
Supplied by REBA Associate Member, Royal London
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