Only around two in five defined contribution pension savers believe they will have sufficient savings to cover the cost of their basic needs in retirement, according to TPT Retirement Solutions.
The findings follow the Pensions Commission’s interim report which found that around 15 million people across the UK are currently under-saving for retirement.
TPT’s survey of 2,500 DC savers found just 30% believe they will have enough to live comfortably in later life. Fewer than one third (29%) believe their pension savings will last throughout their retirement.
Ruari Grant, head of policy and external affairs at TPT Retirement Solutions, said: “Our research shows that the public agrees with the experts. The Commission highlighted the scale of the under-saving problem, and while we might often imagine people are unaware of this, that is not the case, meaning the Commission has a clear mandate to pursue meaningful reforms.
“Automatic enrolment has created strong foundations for retirement saving in the UK, but at current contribution levels many savers will still face inadequate outcomes in retirement. The focus should now turn to ensuring the pensions system delivers the retirement people expect and deserve.”
TPT also welcomed the Commission’s focus on decumulation, noting that improving retirement outcomes is not only about increasing contributions but also ensuring the system people are saving into will deliver an adequate retirement.
TPT previously found that nearly 70% of DC savers would be interested in a solution that provides a sustainable inflation-linked income in retirement. With only 22% of savers willing to pay for financial advice, the pension provider said effective frameworks at the point of retirement are essential to improving outcomes.
Grant added: “Good retirement outcomes do not simply depend on how much people save during their working lives. Savers also need straightforward, reliable ways to access and use their pension savings in retirement, without having to navigate unnecessary complexity or make difficult financial decisions alone.
“The debate has moved beyond encouraging people to save. The challenge now is ensuring the system people are saving into is capable of delivering a lasting retirement income.”
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