The Government are committed to encouraging people to save for the future in private pension arrangements. The introduction of auto-enrolment and Personal Accounts in 2012 will reinforce this commitment, encouraging individuals to contribute to their own future pension income. As a result, the number of individuals reaching state pension age with no private pension income is estimated to decline over the next 10 years.
The number of individuals reaching state pension age (SPA) in 2010, 2015 and 2020 with no additional pension provision beyond that of the state (i.e. no private pension provision) is shown in the following table.
Year SPA is reached Number of individuals with no private pension income Individuals with no private pension income as a percentage of all those reaching SPA (percentage) 2010 200,000 25 2015 150,000 22 2020 100,000 17 Notes: 1. Figures are for Great Britain and are rounded to the nearest 50,000. 2. There is considerable uncertainty over future estimates of private pension provision; the number of individuals choosing to save in a private pension may alter over time according to the macro-economic environment and individual circumstances and preferences. Therefore, the estimates should only be seen as indicative. Source: DWP modelling
The information is not available in the format requested. Such information as is available is presented in the following tables.
The introduction of auto-enrolment and personal accounts in 2012 is intended to increase private pension coverage by making it easier and more attractive for those workers not currently saving privately to do so. We estimate that between six to nine million people will be newly saving or saving more from the reforms.
Percentage 20-29 30-39 40-49 50 to SPA Total 1999-2000 32 53 55 42 46 2000-01 30 52 55 42 45 2001-02 30 52 56 42 45 2002-03 28 51 55 43 45 2003-04 27 50 54 42 44 2004-05 25 48 53 43 43 2005-06 24 47 51 43 42
Million 20-29 30-39 40-49 50 to SPA Total 1999-2000 2.3 4.7 4.1 3.5 14.5 2000-01 2.2 4.6 4.1 3.5 14.5 2001-02 2.2 4.6 4.3 3.6 14.7 2002-03 2.0 4.5 4.3 3.7 14.6 2003-04 1.9 4.4 4.3 3.7 14.3 2004-05 1.8 4.1 4.2 3.8 13.9 2005-06 1.7 4.0 4.2 3.8 13.7 Notes: 1. All figures are estimates and are taken from the Family Resources Survey (FRS). 2005-06 is the latest year for which these data are available. 2. Private pension refers to either an occupational, personal or stakeholder pension scheme. 3. Working age is 20 to state pension age (SPA); 20-59 for women and 20-64 for men. 4. FRS survey data are taken at a point in time. People who do not have private pension provision in a given year can save later on in life or may have had private pensions in the past. Source: Family Resources Survey, Great Britain, 1999-2000 to 2005-06.