New figures released by the Financial Conduct (FCA) has revealed that millions of people in the UK face the realistic prospect of working into their 70s or 80s to make ends meet.
Although there is no doubt that since the introduction of auto enrolment, millions of people are saving for retirement, there are still lots of people who aren't saving at all. A new probe by the FCA shows that a third of workers, approximately 15 million people, are not saving in any way for their retirement.
Writing in the Mirror, FCA chief executive Andrew Bailey says that anyone who is relying on the state pension could be in for a shock: "Around 15 million adults who are not retired are not paying into a pension…"
"While the state pension is a hugely important part of retirement provision… for many people, it is not enough to maintain living standards."
He adds the FCA's largest-ever survey into the nation's personal finances, a poll of 13,000 people, shows "many are not saving enough for their retirement". The average amount bine put away by those who are saving for their retirement is 4.2%, whereas experts recommend at least 12%.
Former pensions minister Sir Steve Webb said that whilst auto enrolment has undoubtedly been a good thing, more now needs to be done.: "The good news is over eight million people have been enrolled into a workplace pension in the last five years."
"But many of these people are only putting a few pounds a week into a pension…"
"Contribution rates now need to be steadily increased if people are going to be able to afford to retire."
A government review that is being conducted at the moment and is due to be published by the end of the year is expected to come back with recommendations to extend auto enrolment to 16 years olds and the self-employed, in a bid to get even more people saving for their retirement.