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| Pension schemes have fewer members than any time since records began | Pension schemes have fewer members than any time since records began |
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| Fewer people are saving for retirement than at any time since official records began, according to figures from the Office for National Statistics, as the gulf between private and public sector pensions widens. | Fewer people are saving for retirement than at any time since official records began, according to figures from the Office for National Statistics, as the gulf between private and public sector pensions widens. |
| In 2012, just 46% of UK employees had a pension scheme, compared to more than 55% a decade ago. Despite the growth in the country's population, membership of workplace-based schemes fell to 8.2m in 2011 said the ONS, the lowest level since the 1950s. | In 2012, just 46% of UK employees had a pension scheme, compared to more than 55% a decade ago. Despite the growth in the country's population, membership of workplace-based schemes fell to 8.2m in 2011 said the ONS, the lowest level since the 1950s. |
| The collapse in pension provision is almost entirely in the private sector. In 1967, more than eight million workers in the private sector had company pensions, but this has fallen to fewer than three million today. | The collapse in pension provision is almost entirely in the private sector. In 1967, more than eight million workers in the private sector had company pensions, but this has fallen to fewer than three million today. |
| Meanwhile, membership of public sector schemes has grown from 4.1m in 1995 to 5.3m in 2011, despite major schemes such as the BBC and the Post Office being reclassified from the public to the private sector. | Meanwhile, membership of public sector schemes has grown from 4.1m in 1995 to 5.3m in 2011, despite major schemes such as the BBC and the Post Office being reclassified from the public to the private sector. |
| The quality of private pension schemes continues to deteriorate. According to the ONS, the "defined benefit" schemes common in the public sector, where the pension payment is based on someone's final salary, typically saw around 19% of monthly earnings put aside for retirement, with the employer paying in around 14%. | The quality of private pension schemes continues to deteriorate. According to the ONS, the "defined benefit" schemes common in the public sector, where the pension payment is based on someone's final salary, typically saw around 19% of monthly earnings put aside for retirement, with the employer paying in around 14%. |
| But in the "defined contribution" stockmarket-based schemes now common in the private sector, the total put aide for retirement is typically just 9%, with the employer paying in just 6.6%. | But in the "defined contribution" stockmarket-based schemes now common in the private sector, the total put aide for retirement is typically just 9%, with the employer paying in just 6.6%. |
| The amount that workers could afford to pay into private pension schemes fell sharply during the recession, but there are signs of recovery. In total, employees paid in £10.2bn in 2007/08; this fell to £7.7bn in 2010/11 but recovered to £8.8bn in 2011/12. | The amount that workers could afford to pay into private pension schemes fell sharply during the recession, but there are signs of recovery. In total, employees paid in £10.2bn in 2007/08; this fell to £7.7bn in 2010/11 but recovered to £8.8bn in 2011/12. |
| Public sector workers are also paying more into their pensions following recent reforms. The ONS said that in 2011, 11% of public sector employees contributed 7% or more of salary, but this rose to 37% in 2012. | Public sector workers are also paying more into their pensions following recent reforms. The ONS said that in 2011, 11% of public sector employees contributed 7% or more of salary, but this rose to 37% in 2012. |
| The workers with the worst pension prospects are the self-employed. The percentage of self-employed men who belonged to a personal pension in 2011 was 34%, the lowest percentage since 1991/92. | The workers with the worst pension prospects are the self-employed. The percentage of self-employed men who belonged to a personal pension in 2011 was 34%, the lowest percentage since 1991/92. |
| A recent report by the Association of British Insurers warned that one in five employees now believes they will never be able to afford to retire. | A recent report by the Association of British Insurers warned that one in five employees now believes they will never be able to afford to retire. |
| But 2012/13 may mark the low point of pension saving in the UK. The government's auto-enrolment scheme, launched by Labour but continued by the coalition, is expected to see as many as 11 million people automatically enrolled into a workplace pension scheme. The biggest employers began auto-enrolment in October 2012, with smaller ones following over the next five years. | But 2012/13 may mark the low point of pension saving in the UK. The government's auto-enrolment scheme, launched by Labour but continued by the coalition, is expected to see as many as 11 million people automatically enrolled into a workplace pension scheme. The biggest employers began auto-enrolment in October 2012, with smaller ones following over the next five years. |
| John Fox, managing director of private pension provider Liberty SIPP, said: "Auto-enrolment is coming and what's clear from this disturbing data is that it couldn't come soon enough. | John Fox, managing director of private pension provider Liberty SIPP, said: "Auto-enrolment is coming and what's clear from this disturbing data is that it couldn't come soon enough. |
| "Few will deny that if things carry on as they are, we will be faced with a pensions catastrophe. As a nation, we truly are looking down the barrel of a gun. We are headed for a future of the retirement haves and the retirement have-nots." | "Few will deny that if things carry on as they are, we will be faced with a pensions catastrophe. As a nation, we truly are looking down the barrel of a gun. We are headed for a future of the retirement haves and the retirement have-nots." |
| Stephen Lowe, director at retirement income specialist Just Retirement said: "Today's figures show us that people are still contributing far too little of their salary to pension savings, and often we are seeing that those who do save are not getting the best deal when it comes to turning savings into retirement income. | Stephen Lowe, director at retirement income specialist Just Retirement said: "Today's figures show us that people are still contributing far too little of their salary to pension savings, and often we are seeing that those who do save are not getting the best deal when it comes to turning savings into retirement income. |
| "Government schemes like auto-enrolment should help improve saving habits, but it is vital that those approaching retirement age properly plan their retirement choices to make the most of precious pensions savings and other assets." | "Government schemes like auto-enrolment should help improve saving habits, but it is vital that those approaching retirement age properly plan their retirement choices to make the most of precious pensions savings and other assets." |
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