Pay rises unlikely to lead to pension contributions rise, IFS says

IFS finds employees do not capitalise on opportunities to boost savings

Martin Richmond
clock • 2 min read

Employees are running the risk of poor retirement outcomes by failing to increase their contributions during significant changes to their finances, according to the Institute for Fiscal Studies (IFS).

The IFS report - When and why do employees change their pension saving? - published today (24 February), found savers failed to utilise substantial changes to their financial circumstances, such as a pay rise, to increase their pension contributions and boost their retirement savings. The findings discovered less than one in 100 private sector employees opted to increase their pension contributions in response to a 10% pay rise, including employees aged between 50 and 59 years old, putting them at increased risk of having insufficient income in retirement. The institute noted other su...

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

Martin Richmond
Author spotlight

Martin Richmond

Reporter at Professional Pensions

More on Pensions

When is a SIPP not a SIPP? Time for a terminology rethink

When is a SIPP not a SIPP? Time for a terminology rethink

'I would suggest that it’s time to review the use of the term SIPP,'

Caitlin Southall
clock 01 December 2025 • 4 min read
Bridging the generational pension confidence gap

Bridging the generational pension confidence gap

'The knowledge gap is universal'

Robert Cochran
clock 27 November 2025 • 5 min read
Warnings of 'damaging' pre-Budget pension speculation impact

Warnings of 'damaging' pre-Budget pension speculation impact

Commentators say speculation on pension issues has negatively impacted saver confidence

Jasmine Urquhart
clock 27 November 2025 • 3 min read