Monday, 28 November 2011


Out of a UK workforce of 29m,

3.4m private sector employees contribute to workplace pensions, 2.4m of them looking forward to salary-linked pensions

5.3m public employees are paying into salary-linked schemes

6.4m workers are paying into personal pensions, which are NOT linked to salary

So 15m are actively contributing to pensions, or 51%.

The typical (or median) public sector pension pays £5,600 a year, compared to £5,860 from similar private sector schemes.

But only 12% of private sector employees are contributing to salary-linked schemes, compared with 87% in the public sector.

42% of the private sector workforce (including the self-employed) contribute to some form of pension scheme, including personal pensions and other schemes where there's no promise of a particular level of retirement income.

With a typical personal pension pot of £30,000 a saver could buy an inflation-proof pension annuity of £1,115 a year.

For reference:
The workforce is 29m strong.

You can split this into:
23m private sector, 6m public sector
25m employed, 4m self-employed
21m full time, 8m part-time

ONS Pension Trends, Sept 2011
ONS Labour Market Statistics, Nov 2011
NAPF Annual Survey 2010
Hutton Report
Hargreaves Lansdown

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