New figures show a 6% rise in individual pension saving in the UK over the last quarter, but the government could do more, according to the Association of British Insurers.
The ABI says the majority of the rise represents new savings, while overall new long-term business in the quarter stood at GBP2.8 billion annual premium equivalent, an annual increase of 12%.
Chris Kenny, the ABI’s director of life and pensions, believes the figures show encouraging growth in individual pensions. He said: The ABI’s view remains that the workplace is key to increasing overall levels of savings in the UK.
Automatic enrolment into workplace and stakeholder pensions, perhaps with an independent body to set the level of employer contributions to schemes that individual employees pay into, would accelerate this trend and dramatically boost savings in the UK.
Mr Kenny added that the ABI would like to see initiatives such as these in the Pensions Commission report, due out next week.