Under 35s lead the way in Britain’s pension revival

• More individuals are saving in a personal pension than ever before
• Under 35s represent the biggest age group saving in personal pensions – more than one-in-three of all savers
• There is a concerning decline in the self-employed saving in a personal pension

New figures released today by Her Majesty’s Revenue and Customs¹ challenge the perception that the younger generation are living for today and neglecting the need to save for their future. Under 35s now represent the largest group, making up 34% of all those who contribute to personal pensions. This is the biggest percentage of all age groups. 35-to-44 year olds represent 24%; 45-to-54 year olds represent 26%; and over 55s year olds represent 16%. 

2.7 million under 35s are reported to be contributing to a personal pension. This is the highest number since records began in 2001, and up a staggering 30% on the previous year. 

There is more encouraging news. Today’s figures show that more individuals are now contributing to personal pensions than since records began in 2001. The figures show that in 2014-15 7.9 million individuals contributed to a personal pension. The previous high was 7.8 million in 2002-03. The total amount contributed to personal pensions in 2014-15 was £20.3 billion. This is nearing the peak of £20.9 billion contributed in 2007-08 ahead of the financial crisis and the downturn in the UK economy. 

One area of concern is the decline in saving amongst the self-employed community. The number of self-employed people saving in a personal pension has fallen to 380,000 in 2014-15. This is lowest number since records began in 2001, and down from a peak of 1.2 million in 2002-03. 

Commenting on today’s figures, Alistair McQueen, Savings and Retirement Manager at Aviva, said: 

“This is a good news story for pensions. The number of people saving in personal pensions is up and the amount being saved is nearing an all-time high. 

“The financial challenges facing the younger generation are well reported – including rocketing property prices, student debt and job insecurity. It is therefore hugely to their credit that they are leading the way in Britain’s pension revival. 

“As the number of people who are self-employed continues to increase – reaching 4.7 million in the latest official statistics² – it is concerning to see the number of savers in this community continues to fall. 

“Automatic enrolment has played a big part in this pensions revival. In 2017, the government will review the future of automatic enrolment. Aviva is committed to its continued success and has launched its own Pre-Review ahead of the government’s formal review. We will present our findings at a summit in London on 15 November. This will be led by Aviva’s UK Life Chief Executive, Andy Briggs, and will be joined by leading stakeholders from across the industry, including Pensions Minister Richard Harrington MP.”  

 Ends

Sources: 

1. https://www.gov.uk/government/statistics/personal-pensions-statistics-introduction
2. http://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/september2016

If you are a journalist and would like further information, please contact:   

Aviva Press Office: Fiona Whytock: 07800 692 299 or fiona.whytock@aviva.co.uk

Aviva’s retirement spokesperson, Alistair McQueen, is available for comment/interview 

Notes to editors:

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