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Pension warning: UK has lowest pension contributions in the OECD – what country is top?

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“We believe an increase in minimum contribution rates to 12 percent of salary would just about achieve a balance between an inertia approach and the opportunity to achieve enhanced outcomes through engagement.

“It is a collective Government and industry responsibility to ensure AE remains a success, relevant to a constantly changing backdrop of personal wealth, taxes and working patterns, and continues (in combination with state pension) to produce good consumer outcomes which are comparable with our international peers.

“We also recognise that it can realistically take several years for agreed proposals to make their way into legislation, which is why we call for a second official DWP AE review to take place no later than 2022 and for future statutory reviews to take place periodically.”

As it stands, automatic enrolment rules mean all employers must provide a workplace pension scheme in which eligible workers are enrolled.



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