Defined benefit payouts will peak this year before tailing off as the impact of scheme closures is felt, the Department for Work and Pensions says.
Analysis from the department suggests average annual payouts will hit £7,100 this year, before dropping below £4,000 in 2034 and will be down to £2,400 by 2060. Pensions minister Steve Webb said the figures marked a significant shift in pensions saving and demonstrated the importance of making auto-enrolment work. "With payouts peaking this year, final salary schemes closing and figures that show that only 38% of working-age people are saving into a private pension, it is clear that we are facing a different world in pensions," he said. "That is why our workplace pension reforms ar...
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