The fictional man, or indeed woman, on the Clapham omnibus is likely to have received a fright today...
The fictional man, or indeed woman, on the Clapham omnibus is likely to have received a fright today with the release of figures from the TUC, which it says proves just why there should be compulsory employer contributions to pension schemes.
According to TUC calculations an employee earning £20,000 would have to save an average of 17.6% of his or her annual salary in order to maintain a current standard of living once retired.
Without employer contributions - what the TUC is arguing for - that would require the employee to save £3,520 into their pension pot.
The TUC wants a 2:1 ratio, i.e., with the employer paying in twice the amount as the employee, at which point the cost to the employee would fall to about £1,174.
Employees on a £30,000 salary wanting to maintain their standard of living would be required to save 19.8% of their income.
At the ratio proposed by the TUC that would mean required annual savings of £1,980 as oposed to the full amount of £5,940.
The figures accompany a broader poll that says 81% of those surveyed wanted "compulsory employer contributions to pensions".
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch
To drive progress