The number of people in the U.K. saving in private pension
plans has reached the lowest level in 10 years, according to the Department for Work and Pensions in London.
Just 38 percent of working age people are saving money in retirement plans, down from 46 percent in 2000, the government said.
“With fewer people saving into a pension, lower annuity rates and an average of 23 years in retirement
, many people could face a poorer future in their later lives,” said Pensions Minister Steve Webb. “We simply must put a stop to this trend and get people saving.”
The study said that only 11.6 million of 30.4 million working-age people in the U.K. are saving in private pension plans.
The largest decline in private pension saving occurred among people below age 40, the study said.
The government has also announced change that will require companies to automatically enroll
employees in a pension plan beginning this year.