Half of auto-enrolment savers 'cannot afford' contribution hikes

Pru research reveals contribution concern

clock • 1 min read

Auto-enrolment is helping savers make better retirement plans but almost half believe they cannot afford higher contributions, according to research from Prudential.

The provider found 44% of new savers say they are now making better plans for retirement under auto-enrolment, first launched by government in 2012. More than half (51%) admitted they could afford to save more with 29% saying they could afford to save an additional £100 or more. Only 26% of those surveyed believed they were saving enough for a comfortable retirement. However, nearly half (49%) of new pension savers feel they cannot afford to increase contributions from their current level. Under current rules workers aged 22 or over and earning more than £10,000 a year need to contr...

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

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Pensions and divorce: Where advisers can add the most value

Pensions and divorce: Where advisers can add the most value

'A pension is not simply another line on a balance sheet'

Tim Latham
clock 12 May 2026 • 4 min read
'A paralysis of the UK pension system' - The reality of transfer delays

'A paralysis of the UK pension system' - The reality of transfer delays

Provider ‘stalling’ causing tense SASS client case

Isabel Baxter
clock 12 May 2026 • 6 min read
WBR group buys financial planning firm's SSAS book

WBR group buys financial planning firm's SSAS book

Part of long-term growth strategy

Jenna Brown
clock 05 May 2026 • 2 min read