The number of workers saving in to a pension has dipped to a new 15-year low, according to official statistics.
As the government struggles to make workers come to terms with saving more for their later years, last year only 48% of workers belonged to a pension scheme.
When the Office of National Statistics started keeping records in 1997, 55% of employees belonged to workplace pension schemes.
Even worse, out of those 4% of public sector employees and 19% in the private sector made no contribution to their pension.
Public sector workers were more likely to contribute between 6% and 7% of their earnings to a pension – 48% against just 10% of those employed by private companies.
The National Association of Pension Funds, the industry body for pension providers, blames the poor figures on disillusionment over the closure of final salary pension schemes in favour of money purchase plans.
NAPF policy director Darren Philp said: “We’ve passed an important and worrying landmark. Less than half the workforce is now saving into a pension, and with people living longer the UK is facing a growing headache in paying for its old age.
“It is encouraging that saving has held up in the public sector. But it is a worrying picture in the private sector, which has seen a significant fall in pension uptake.
“Sadly, the fall in people saving into a final salary scheme has not been fully matched by interest in other types of pension. The weak economy and falling confidence in financial products have also spurred many private sector workers to quit pensions altogether.”
The ONS findings also showed professionals (76%) are more likely to have a pension than other occupations, while those in working in retail are least likely (19%).
