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...

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