£11bn DC pension shortfall due to savers' lack of understanding - Aon Hewitt

Four out of five DC contributors 'not saving enough'

Hannah Godfrey
clock • 2 min read

Defined contribution (DC) pension contributors are saving £11.4bn less than they need to each year, according to a survey by Aon Hewitt.

The UK-wide survey also found individuals were, on average, contributing £1,400 a year too little into their pension pots and that less than a fifth (16%) of people contributing to a DC pension scheme were saving enough to maintain their standard of living in retirement. Carried out by YouGov, the survey concluded 8.1 million people to a DC scheme, and of these, around a third (2.75 million) do not know the level of retirement income they are expecting to receive. Additionally, around half (4 million) will not have saved enough at retirement to maintain their standard of living, based on...

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