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

Case study: The hidden risk of a single member SSAS without a professional trustee

Case study: The hidden risk of a single member SSAS without a professional trustee

The problem, the solution, lessons learned

Caitlin Southall
clock 30 March 2026 • 4 min read
Salary sacrifice protections overturned by House of Commons

Salary sacrifice protections overturned by House of Commons

Commons overturns Lords amendment to increase cap to £5,000 from initial £2,000 proposal

Holly Roach
clock 24 March 2026 • 1 min read
 Rachel Vahey: Advisers and clients still need clarity on NMPA increase

Rachel Vahey: Advisers and clients still need clarity on NMPA increase

'HMRC has had years to clear this up but has sat on its hands'

Rachel Vahey
clock 11 March 2026 • 4 min read